A study on Fintech Fallout: Examining the Possible Repercussions of an Indian Paytm Ban

Abstract

Now-a-days world is becoming digitalized in every field and one of the best examples of this is that various countries in the world are moving towards becoming a cashless society. Following the introduction of digital interfaces in trade, industry, and commerce—especially with the rise in popularity of digital banking and electronic payment systems—the Indian economy has grown quickly. Electronic payments have increased since the Indian government declared demonetization in 2016 and are predicted to do so in the future as a result of official promotion of digital payment methods. In 2022, 47% of Indians had access to the internet, and in urban areas over 100% of people compared to those in rural areas. However, as the information technology-enabled generation has grown, more people are using digital payment methods in their daily transactions, which has led to the daily processing of over 140 crore rupees through various digital payment methods in India. The goal of the current study is to identify the legal concerns, the outcomes (Paytm) that follow from these concerns, and some recommendations on how to overcome these challenges. This paper goes on to detail further ways to enhance digital payment processing and financial transfers.