A Public Interest Litigation (PIL) has been filed against Paytm Payments Bank for certain postpaid services offered by the firm before the Delhi High Court. However, both the Reserve Bank of India (RBI) and the company have opposed the petition. RBI, for its part, said that a PIL cannot be used as a weapon to challenge the financial or economic decisions taken by the Centre or the RBI.
The petition filed by Abhijit Mishra, a financial economist, claimed that Paytm Payments Bank Ltd’s ‘post paid’ service was operating contrary to the existing law and guidelines regulating such entities.
However, the RBI submitted before the court that Section 22 of the Banking Regulation Act empowers it to issue banking licence to a company to carry on banking business in India. Seeking dismissal of the plea, the RBI said Mishra has sought the relief against Paytm but he has made central bank the first party since he might be aware that a PIL would not lie against a private body and is indirectly attempting to misguide the court.