Such an unusual event in the nation’s fintech ecosystem will not break the trust of traders and others in the digital payment system made over the years, CAIT National President BC Bhartia said.
The recent Paytm fiasco has prompted the Confederation of All India Traders (CAIT) to underscore the critical importance of robust data security measures and regulatory compliance in the fintech ecosystem.
CAIT emphasizes the need for companies to remain vigilant and proactive in addressing security vulnerabilities to maintain user trust in the digital payments ecosystem.
Statement from CAIT National President BC Bhartia
In a statement, CAIT National President BC Bhartia emphasized that while the Paytm incident is unprecedented in the country’s fintech landscape, it should not erode confidence in the digital payment system established over the years.
Bhartia stressed the significance of robust data security measures, regulatory compliance, and maintaining user trust in ensuring the integrity of the digital payments ecosystem.
Action by Reserve Bank of India (RBI)
Following the directive from the Reserve Bank of India (RBI) on January 31, Paytm Payments Bank was instructed to cease accepting fresh deposits and conducting credit transactions after February 29.
Additionally, Paytm Payments Bank was barred from accepting top-ups in any customer accounts, including prepaid instruments, wallets, FASTags, and NCMC cards.
The RBI’s action was prompted by persistent non-compliance and material supervisory concerns identified in the bank’s Comprehensive System Audit and compliance validation report.
CAIT’s Response to Security Concerns
CAIT Secretary General Praveen Khandelwal dismissed concerns about reverting to a cash-based system, emphasizing the government’s efforts to promote and facilitate digital payments adoption in India.
Khandelwal highlighted the availability of multiple digital payment options in the market, ensuring continuity in the digital payment ecosystem.
He noted that increased awareness and proactive measures by digital payment players would strengthen the ecosystem further.
Conclusion
CAIT’s response to the Paytm incident underscores the importance of data security, regulatory compliance, and user trust in maintaining the integrity of the digital payments ecosystem.
As the fintech landscape evolves, continued vigilance and proactive measures by companies and regulatory authorities are essential to safeguarding user data and maintaining consumer confidence in digital payments.
