Central Depository Services India to inspect Paytm Money’s KYC process

The country’s largest securities depository, Central Depository Services India (CDSL), has commenced an examination of Paytm Money’s procedures for verifying customers, according to a report by The Economic Times (ET). This scrutiny comes in the wake of regulatory actions against Paytm Payments Bank by the Reserve Bank of India (RBI) and the central bank’s directive on January 31.

The RBI’s recent directives have resulted in restrictions on most operations of Paytm Payments Bank, including deposits and fund transfers, effective from March 1, 2024. These measures were imposed due to alleged breaches, including violations of Know Your Customer (KYC) norms. However, it’s important to note that these restrictions do not directly impact Paytm Money, which operates as an independent entity.