Paytm: Paytm has taken this big step a day after the Reserve Bank of India banned many services of Paytm Payments Bank.
Paytm: Mobile payments firm Paytm has said that the company has stopped its loan giving platform operations for a few weeks. However, the company is engaged in talks for partnership with some banks. Paytm has taken this big step a day after the Reserve Bank of India banned many services of Paytm Payments Bank.
What order has RBI given?
On January 31, 2024, it was reported that the Reserve Bank of India (RBI) has directed Paytm Payments Bank Limited (PPBL) not to accept deposits or top-ups in any customer account, prepaid mode, wallet and Fastag after February 29, 2024. Was instructed. After this news, yesterday on February 1, Paytm shares fell drastically and saw a decline of up to 20 percent.
After February 29, almost all services of Paytm Payments Bank will be closed.
RBI’s order to close almost all the services of Paytm Payments Bank after February 29 is expected to impact the company’s annual operational profit by Rs 300-500 crore. The Reserve Bank has taken this step against Paytm Payments Bank Limited (PPBL) after the comprehensive system audit report and compliance verification report of external auditors. Earlier, in March 2022, RBI had stopped PPBL from adding new customers with immediate effect.
What is in the decision of RBI
RBI said, “No deposit or credit transaction or top up will be allowed in any customer account, prepaid mode, wallet, Fastag, NCMC card, etc. after February 29, 2024. However, no interest, cashback or refund will be allowed. Can be deposited at any time. Giving this information in a statement on Wednesday, RBI said that concerns related to non-compliance of rules were continuously raised in these Paytm Payments Bank. After this, there was a need for further action and RBI has taken this Took the decision.
In the clarification that came from Paytm after the RBI order, it has been said that the company is fully cooperating as per the instructions of RBI. We have imposed a moratorium on new loan issuance for a few weeks and have seen some disruption.
