INDIAN BANKS' RUSH FOR CLIENTS SET FOR RECKONING AFTER PAYTM FIASCO

Indian regulators are cracking down on financial sector fraud, exemplified by the suspension of Paytm's banking affiliate, signalling tougher oversight and enforcement measures to come

- 

Indian regulators are intensifying their efforts to combat potential fraud within the financial sector, with Paytm's recent troubles serving as a harbinger of stricter oversight to come.

Last month, India's banking affiliate of Paytm, a onceprominent fintech player with backing from notable investors like Warren Buffett and SoftBank Group Corp, faced abrupt suspension of most of its activities by Indian authorities. This move came amidst allegations of severe lapses in customer verification, including the alleged use of a single identity document to open thousands of accounts. While the case of Paytm represents an extreme instance of regulatory breaches, it underscores a broader trend of growing impatience from regulatory bodies.