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Doubts over Paytm ownership?

Doubts over Paytm ownership?

Doubts over Paytm ownership?
March 01
13:43 2018

SPECIAL CORRESPONDENT
Gooogle News |

Paytm the name is an acronym for “Payment Through Mobile”. It also operates the Paytm payment gateway and the Paytm Wallet. Money transactions are being done through Paytm by all important business organizations / shop/traders in India consisting of 3 Million (30 lakh) as on Jan, 2017 in India. Payments firm Paytm has registered 200 million users for its digital wallet, reaching a milestone few other internet companies have in India.

Reliance Capital has got one percent stake for Rs.10 Crore as on 2010 in Paytm’s parent One97 Communications and later sold during 2017 for 275 Cr to Alibaba Group and its affiliate Ant Financial who have pumped in $680 million into Paytm’s parent One97 Communications last year. Alibaba has received special treatment from the Chinese government which has helped establish the company with a global brand name which is growing rapidly. Infact, Chinese Government Has A Huge “Stake” In Alibaba.

If in case tomorrow, the Paytm app does not respond or stops working due to some technical reasons and the 200 Million wallet users of the Indian population are using the Paytm app and having an average Rs.100 in their Paytm wallets, who is responsible ? It will pave the way for another scam.

There are chances of another scam of Crores of Rupees. People cannot go to court since the amount is very little, cannot even go to police to complaint; resulting the company for a benefit of Crores of Rupees of hard earned money of general public. Who is answerable for the money being collected by Paytm from general public?

Since this One97 Communications is owned by a Public Company supported by Chinese Government one cannot go to police, court or an International court for his wallet balance of few hundreds of rupees.

During the Financial Year 2017, the Paytm Payments Bank incurred losses of Rs 30.7 crore between August 2016 and March 2017. Is it correct for us to keep the amount in Paytm banks or making transactions through Paytm?

Surprisingly the Reliance Capital who earlier had a stake in its One97 Communication, the Parent company of Paytm has sold its stake during March 2017 and during April 2017 itself the Prime Minister Narendra Modi launched the BHIM a Digi-dhan movement is also a cleansing mission to fight the menace of corruption.

BHIM-Aadhaar, the merchant interface of the BHIM App, will pave the way for making digital payments by using the Aadhaar platform. Any Indian citizen can pay digitally using their biometric data like their thumb imprint on a merchants’ biometric enabled device which could be smart phone having a biometric reader. Already, 27 major banks are now on board with 7.15 lakh merchants so that they can start accepting payments using BHIM Aadhaar.

The One97 Company used the photograph of the Prime Minister in their respective full page ads and later apologised for their “inadvertent mistake” when a clarification was sought by the Department of Consumer Affairs.

Doubts arise why the Government of India has waited till the transfer of ownership of Paytm was carried from Ambani group to Alibaba group. The BHIM (Bharat Interface for Money) mobile payment app has been developed by the National Payment Corporation of India (NPCI) in association with Juspay and is part of Unified Payment Interface (UPI) which was originally launched by PM during December 2016 was silent till April 2017.

Presently, Alibaba and Ant Financial, collectively hold around 40% stake in One 97. Now the Reliance Capital has a very little stake in Paytm and can withdraw it at any point of time.

To meet the Reserve Bank of India guidelines for launching payment banks, One97 Communications had separated its commerce and payments businesses to adhere to the rules and start operations. At the time, the shareholding of Paytm’s parent firm mirrored the ownership in the newly created entities.

The RBI had prescribed guidelines governing issuance, issued on 11th Oct last year. The guidelines are designed to strengthen safety and security of transactions and customer protection. Initially, the timeline was set at December end for PPI issuers to comply with the KYC requirements.

Today, the agency under KYC programme is collecting the Aadhar Card numbers, Mobile numbers, thumb impressions of general public and what does they wanted to do with all these information? Is it not foreign Company collecting sensitized information which is the privacy of Indian public?

But the question lies is how far it is correct to provide KYC information to a Company owned as equal as an enemy country? How safe are we when all our personal information is under threat? Are we waiting for another scam?

to be cont…story No-2

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