Why Paytm Payment Bank Banned: RBI took big action on Paytm Bank, will the bank be closed soon? Know the complete details!
Why Paytm Payment Bank Banned: Paytm, a widely used payment processor in our nation, also provides us with the Paytm Payments Bank service, which is used by a large number of its customers. Users connected with Paytm Bank, however, are about to hear some terrible news.
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Action against Paytm Payments Bank Ltd under Section 35A of the Banking Regulation Act, 1949https://t.co/bswaWHSxtk
— ReserveBankOfIndia (@RBI) January 31, 2024
Why Paytm Payment Bank Banned ?
Why Paytm Payment Bank Banned:The Reserve Bank of India (RBI) has taken strong action against Paytm Payments Bank Limited, which has put its consumers in a bind as they are unaware that Paytm would be unable to continue operating as a result of this move. When does the bank’s structure change?
In light of this, we have decided to provide you with comprehensive updates on Paytm Bank Banned in today’s article. This will ensure that you get accurate information. To learn all there is to know about Paytm Bank Banned, be sure to read this page to the very end.
What action did RBI take on Paytm?
The Reserve Bank of India (RBI) has reportedly taken strong action against Paytm due to the company’s many regulation violations in the banking industry. According to RBI’s findings and those of external auditors, Paytm has broken many regulations in its audit reports.
Paytm Payments Bank users will no longer be able to make deposits or use the credit feature as of February 29th, as a result of this action by the Reserve Bank of India (RBI) against Paytm. That means, after February 29th, no one will be able to deposit or withdraw funds into your Paytm Payments Bank account. In addition, the Reserve Bank of India has outright banned the majority of Paytm Payments Bank-related services.
In addition, Paytm FASTag and Paytm Postpaid have been outlawed by the RBI. However, you may still utilize the amount in your Paytm FASTag, and if it runs out, you can top it up using Paytm Bank. I’m incompetent.
[1] PayTM banned from Payments Bank Business.
— Akshat Shrivastava (@Akshat_World) February 1, 2024
[2] PayTM says: no problem, it will work with traditional banks.
[3] BUT, several stock market experts about top corporate banks in India: NIM is poor, asset quality is bad, this-that. And, these can't grow.
How Long Till The Paytm App Is Closed?
Many consumers are wondering whether their Paytm app would cease functioning after this RBI decision. Having said that, be assured that nothing of the kind will occur, and that you will continue to have no issues using your Paytm app.
Rest assured, the RBI’s prohibition only applies to Paytm Payments Bank and not to any of Paytm’s other businesses. All sorts of services, including UPI, recharge, energy, water, Paytm Gold, Paytm Money, and more, will be available to you on Paytm. Other banks, such as HDFC, Axis, SBI, etc., would be required to utilize all these services.
As a result, you may continue using your Paytm app without interruption. Customers of Paytm Payments Bank will be the only ones impacted by this RBI move; users of the Paytm application will be unaffected.
Drop in Paytm Stock Value
The stock market value of Paytm has dropped by as much as 20% after this stringent move by RBI. Shares of Paytm, whose legal name is One97 Communication Limited, are trading at Rs 487 on the stock market as of this writing (February 2, 2024).
On the other hand, Paytm CEO Vijay Sharma assured media outlets that all of their services would be available to Paytm consumers even after February 29. Our clients won’t have to worry about a thing since we’re going to team up with other banks to handle this.
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For Paytm Payment Bank Users
Update: Paytm Payments Bank Limited, an associate of Paytm receives RBI directions. Paytm to expand its existing relationships with leading third-party banks to distribute payments and financial services products.
— Paytm (@Paytm) January 31, 2024
Read more here: https://t.co/NsPCOxp6VJ pic.twitter.com/fQjozyR11m
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