
The Confederation of All India Traders (CAIT) advises Indian businesses to avoid foreign payment apps.
Background:
- CAIT Secretary General Praveen Khandelwal emphasizes sticking to Indian payment solutions.
- CAIT’s advisory follows RBI’s restrictions on Paytm, prompting concerns among traders.
CAIT’s Advice:
- Traders urged to choose Unified Payments Interface (UPI) or Indian bank apps over foreign-owned ones.
- Focus on supporting India’s ‘Make in India’ initiative.
RBI’s Actions and Paytm’s Situation:
- RBI imposed limitations on Paytm Payments Bank (PPBL) from accepting deposits or conducting credit transactions.
- Paytm faces security apprehensions post-RBI’s measures.
- Paytm is widely utilized by Indian merchants and customers for transactions.
Foreign Ownership of Competing Apps:
- PhonePe, owned by Walmart, and Google Pay, based in California, pose competition to Paytm.
- Paytm’s CEO Vijay Shekhar Sharma holds the largest share in the company.
Paytm’s Response and Operational Continuity:
- Paytm assures the continuation of its services beyond the imposed deadline.
- The company shifts its nodal account to Axis Bank to ensure seamless transactions.
- Made-in-India devices and QR code systems will remain unaffected.
RBI’s Concerns and Probe:
- RBI’s actions stemmed from a probe citing money laundering and KYC norm violations.
- The move signifies the regulator’s vigilance over financial security.
Concerns Raised and Government Response:
- Parliamentarian Supriya Sule highlights concerns over foreign payment platforms.
- Calls for government intervention to address potential risks like money laundering.