NEW DELHI : The Delhi High court on Monday has been moved on a Public interest litigation (PIL) filed by financial economist Abhijit Mishra on the alleged illegal operations of thePaytm Post Paid Wallet. The plea is against the alleged illegal operation of the Paytm Post Paid wallet which provides lending facilities in contravention of law which regulates such facility.

The bench headed by Chief Justice Rajendra Menon and Justice Brijesh Sethi has issued a notice to the Reserve Bank of India (RBI) and PayTM Payments Banks Limited seeking their stand on the same. The next date of hearing is on 3rd September.

“Through the means of this Public Interest Litigation, the petitioner wants to highlight the issues in the Paytm Payments Bank Limited’s unauthorised / illegal operation of Paytm Post Paid Wallets in defiance of Operating Guidelines for Payments and Guidelines for Licensing of Payments Banks as issued vide notification by the Banking Regulator viz- Reserve Bank of India.

The petitioner is very much concerned for the welfare of Indian Financial system. The Paytm Payments Bank by the means its unauthorized Paytm Post Paid has provided unmonitored and unauthorized access to the personal information such as AADHAR, PAN, Transaction etc. of the bank’s customer to the unauthorized third party, thereby clearly violating the Article 21 of the Indian Constitution and other relevant banking acts such as Payments and Settlements Act." The petition reads.

The petitioner has prayed for directions to the Reserve Bank of India to take appropriate punitive actions against the Paytm Payments Bank Limited under the provisions of 47A of the Banking Regulation Act, to absolve all the customers who are in default of their debt of the credit payments to the Paytm Post Paid wallet, to transfer all the profits earned from the Paytm Post Paid Wallet operation to the Prime Minister’s Relief Fund for the welfare of the nation, to direct Reserve Bank of India to appoint / depute one of its senior officer on the board of the Paytm Payments Bank Limited for considerable period to overlook audit of operations and regulatory compliance of the Payments Bank.

The said appointment / deputation should be till the point of comfort of regulatory compliance by the Honorable Governor, Reserve Bank of India and to initiate enquiry and investigation by the competent investigating authorities against the directors, management and officers of the Paytm Payments Bank Limited for malpractice and violation of provision of Article 21 of the Indian Constitution, Banking Regulations Act, Payments and Settlements Act and other relevant banking acts.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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