Delhi HC issues notice to PayTM, RBI on company's postpaid wallet service

Court notice on PIL which alleged PayTM post-paid wallet in contravention of RBI guidelines on payment banks

The Delhi High Court on Monday notices to the Reserve Bank of India (RBI) and PayTM, seeking their response to a Public Interest Litigation (PIL) which claims that the digital payment company is violating the banking rules by operating a post-paid wallet. A division bench led by Chief Justice Rajendra Menon was hearing the PIL which has alleged that though PayTM has a payments bank licence, it is not allowed to facilitate credit disbursement or loan facilities to customers.

PayTM’s post-paid service allows users certain credit limit based on their transactions and allows them to pay back the amount without