New Delhi, 25 April (H.S.): The Confederation of All India Traders (CAIT) has welcomed the Reserve Bank of India’s (RBI) decision to cancel the licence of Paytm Payments Bank Limited, calling it a decisive step taken in the public interest.

CAIT’s National Secretary and Chandni Chowk MP Praveen Khandelwal, in a statement on Saturday, said the move highlights the seriousness of repeated regulatory violations, management failures, and the disregard of RBI’s directives. Major restrictions had already been imposed on the bank’s operations in 2024, but despite opportunities to rectify these issues, the institution failed to bring about the expected corrective changes.

Khandelwal appreciated the assurance given by the RBI to depositors—that their funds are safe and will be returned in line with due process. He stressed that this assurance is particularly important for millions of small traders, shopkeepers, street vendors, hawkers, and women entrepreneurs who have heavily relied on Paytm for daily digital transactions.

CAIT noted that any regulatory action on a platform as widely used as Paytm Payments Bank can cause inconvenience to micro and small business users, and urged authorities to ensure a smooth transition mechanism so that transactions are not disrupted for these vulnerable sections.

CAIT National President B.C. Bhartia has demanded a comprehensive investigation into how the vast financial and consumer data collected through the Paytm platform has been managed, stored, and potentially shared. He highlighted the need for a thorough probe into data‑security and data‑sovereignty issues, particularly in view of foreign investments, including stakes linked to Chinese entities.

Bhartia emphasized that digital payments are the backbone of modern trade and that public trust in fintech platforms must be preserved. According to him, the RBI’s action sends a clear message that no institution can flout rules or ignore the interests of customers.

Khandelwal added that financial innovation must move forward in tandem with transparency, accountability, and strict adherence to Indian laws, with the interests of consumers and the nation placed at the highest priority.

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Hindusthan Samachar / Jun Sarkar