The regulatory scrutiny faced by Paytm Payments Bank has revealed a prolonged period of compliance challenges and operational shortcomings that have accumulated since its inception. Despite warnings and directives from regulatory authorities, PPB has faced multiple allegations ranging from violations of banking regulations to lapses in data security and conflicts of interest with its parent company, One 97 Communications. This scrutiny intensified following a series of inspections and audits revealing various irregularities, prompting actions such as business restrictions and the appointment of external auditors. Simultaneously, it has brought to light glaring regulatory lapses and inefficiencies within bodies like the Securities and Exchange Board of India (SEBI). These instances show a disturbing pattern of regulatory negligence and inaction in the face of blatant violations and malpractices. As investors reel from the fallout of these scandals, questions arise regarding the effectiveness and reliability of regulatory oversight mechanisms, particularly in safeguarding against fraud and ensuring market integrity. This sets the stage for critically examining the regulatory landscape, probing into the factors contributing to regulatory failures and the implications for investor confidence and the broader economy.