What's a success story without some bumps on the road? After having a dream run since the demonetisation storm hit India last November, Noida-based e-wallet company, Paytm has got itself its very first reprimand from a government organisation.

India Post, the government-operated postal system in India, has sent out an official notice to the Indian mobile wallet major and warned them against using the term ‘postcard’ for one of its newly launched products.

The notice, which has been addressed to Paytm founder and CEO Vijay Shekhar Sharma, asks the company to stop using the term ‘postcard’ with immediate effect.

According to the notice sent out by Department of Posts, they are asking paytm to dump the word 'postcard' for its newly launched products because in India, the India Post legally has the sole right to use the term under the IPO Act rules and regulations. For the uninitiated, during the recent Raksha Bandhan season, the e-wallet company had launched new products called Paytm Postcards. These postcards were a digital version of gifting money during special occasions/festivals.

“It is hereby intimated that the use of word Postcard is the sole prerogative of India Post as per the IPO Act and established rules and regulations. Hence, the usage of the word Postcard is an infringement of the terms and conditions of the provisions of rules and guidelines,” reads the notice sent by Rahul Kaushik, assistant director general at India Post.

This is probably the first time that a government department is openly challenging a renowned startup of the country on the grounds of brand infringement. The Noida-based company is currently the second most valued internet-based startup in India after Indian ecommerce major Flipkart. Softbank's recent USD 1.4 billion investment in Paytm played a crucial role in helping the latter climb the success chart.

Interestingly, this isn't the first time that Paytm has run into trademark troubles. A while ago, global payments major PayPal had accused the Indian e-wallet major of copying its design and colour scheme. However, Paytm ended up emerging as a winner in the case as the government dismissed PayPal's claim and approved Paytm to officially register its trademark.

Paytm has been the biggest gainer of the Indian government's surprise demonetisation move. The drive, which ended up sucking out 86% of the country's currency in circulation, resulted in a temporary cash crunch situation, which ultimately led to people turning to digital wallets to satiate their cash hunger. Paytm is currently leading the space with over a whopping 250 million users.

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