Who will protect our online deposits with PayTM?

Hi guys!

Something interesting came to my mind? We start using PayTM whose CEO was on TV today and yesterday extolling the benefits of using PayTM. By the way Modi government is also encouraging and even recommending that we use payment mechanisms like PayTM. But hold on, is it wise to do so?

Are these organizations and payment wallets or whatever names they exist regulated? The banks are regulated but what about organizations like paytms. Lets say even if 50 million people deposit Rs. 500 in PayTM which is equals Rs. 12500 million, what happens if any of them goes bust? That is huge amount of public money left in the hands of unregulated financial institution.

Does the government has the authority to force the people to use unregulated financial institutions? Has the government thought about it? I doubt it. When even banks have failed, what is the guarantee that PayTM or any such organization or a fly-by-night operators will not take people for a ride or will not fail? Also, can the government ask us to put money in risky organizations? Can they force us to do that? Also, consider the fact that our criminal justice system connected with the IT transactions is very weak.

In any case, I am not sure you can everything digital. Digital payments will increase and are already increasing but I am not it would fair on part of Mr Modi to force my mother who is 80 years old to use digital money. Also, I think Mr Modi has no right to force me to us the method of payment that I can use which is legally available in this country till he passes a law and I would certainly like to see him do it. The last I heard Mr Narendra Modi did not have any authority to infringe upon my freedom to make payments the way I like.

Oh! By the way I don’t know if you notices that PayTM had full page advertisements in Times of India on 9th morning which I think is a little difficult to manage considering the time constraints involved.

Avinash Narula

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