CAIT recommends traders to switch from Paytm to alternate payment options.

Traders’ body CAIT has issued a cautionary advisory to businesses, urging them to switch from Paytm to alternative payment options following the recent restrictions imposed by the Reserve Bank of India (RBI) on Paytm wallet and bank operations. The Confederation of All India Traders (CAIT) expressed concerns about the security and continuity of financial services provided by Paytm, stating that the RBI restrictions could cause financial disruption for small traders, vendors, hawkers, and women who heavily rely on the platform for payments. Sources reveal that the RBI’s actions were prompted by money laundering concerns and questionable transactions involving hundreds of crores of rupees between Paytm and its banking arm. As a result, Paytm Payments Bank Ltd (PPBL) has been ordered to halt most of its business activities, including deposits, credit transactions, and top-ups on customer accounts. However, customers will still be able to access their existing deposits and use their wallets for payments until February 29. CAIT Secretary General Praveen Khandelwal emphasized the importance of the advisory, urging traders to act promptly and make informed decisions to mitigate any potential adverse effects on their financial operations.

CAIT, an influential traders’ body in India, has urged merchants and shopkeepers to explore alternative payment options rather than relying solely on Paytm. This move comes amidst concerns over data privacy and security breaches associated with the popular digital wallet. While Paytm has been a widely adopted payment solution for millions of Indians, CAIT advises traders to diversify their payment methods to ensure the safety of their customers’ sensitive information. By embracing other trustworthy payment options, merchants can enhance consumer confidence and protect their businesses from potential risks.

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