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Foundation

Case Study: Understanding a Real KYC Failure and Its Regulatory Consequence

A beginner-friendly case study of one of India's most visible compliance failures: Paytm Payments Bank. You start with what a payments bank is allowed to do and why KYC sits at the front of every account it opens. You then follow the story in order: RBI stopping new customer onboarding in March 2022, the supervisory findings and penalties that followed, FIU-IND's discovery that proceeds of illegal online gambling had moved through the bank's accounts, and RBI's January 2024 restrictions on fresh deposits and credits. You see who was affected, from wallet users and FASTag holders to merchants and shareholders of the listed parent One97 Communications. The course closes with a skill most retellings skip: separating what the regulators' own orders say from what headlines claimed, and turning the case into a checklist that compliance teams and investors can actually use.

KYC FailurePaytm Payments BankRBI Section 35AFIU-IND and PMLA PenaltiesOngoing Due DiligenceRegulatory Risk for Investors
MODULES
4
DURATION
4 Hours
TRACK
Forensic Accounting & Compliance

What You'll Master

Explain what a KYC failure is and why regulators treat it as a failure of the whole institution
Describe the payments bank licence and why its business model made KYC and monitoring critical
Trace the Paytm Payments Bank story from the 2022 onboarding ban to the 2024 restrictions in the right order
Identify the specific KYC and due diligence lapses FIU-IND found and the PMLA powers it used
Understand how RBI's business restrictions worked in practice for customers, merchants and the listed parent
Read a regulatory order critically and keep confirmed findings apart from media reports
Turn the case into practical warning signs for compliance work and for evaluating listed companies
Access Level
LEARNER
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Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates

Curriculum Breakdown

Chapter 1: Setting the Scene

2 Lessons
▶
What a KYC Failure Actually Looks Like9 min read
Preview
▶
Paytm Payments Bank: The Licence, the Business and the Group11 min read

Chapter 2: The Warning Signs

3 Lessons
▶
March 2022: RBI Stops New Customer Onboarding10 min read
▶
Inside the Lapses: Gambling Proceeds and Borrowed KYC12 min read
▶
Red Flags Before the Crackdown: Penalties and Audit Findings10 min read

Chapter 3: The Regulatory Consequence

3 Lessons
▶
January 2024: RBI's Business Restrictions Explained11 min read
▶
The FIU-IND Penalty and How PMLA Fines Are Calculated10 min read
▶
The Fallout for Customers, Merchants and Shareholders11 min read

Chapter 4: Lessons From the Case

2 Lessons
▶
Fact Versus Headline: Reading a Regulatory Order Correctly10 min read
▶
What This Case Teaches Compliance Teams and Investors10 min read