RBI has barred Paytm Payments Bank Limited from accepting deposits or top-ups in any buyer account, pay as you go devices, wallets, and FASTags, amongst others after February 29, 2024.
| Photo Credit: The Hindu
“Digital payments and services app Paytm is working and will continue to work as usual even after February 29,” its CEO Vijay Shekhar Sharma stated on February 2.
The founder and CEO of One97 Communications Limited (OCL), which owns Paytm model, on social media platform X stated the corporate is dedicated to serving the nation in full compliance.
“To every Paytmer, your favourite app is working, will keep working beyond 29 February as usual,” Mr. Sharma stated.
OCL holds a 49% stake in PPBL however classifies it as an affiliate of the corporate and never as a subsidiary. “I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it,” Mr. Sharma stated.
The Paytm prime administration throughout an incomes name on February 1 stated they’re engaged on a migration plan for PPBL, pockets, FASTag and so forth customers with different banks. The firm sees the RBI order to have an effect of ₹300-500 crore on its annual operational revenue as its clients will not give you the chance to add cash to their wallets, FASTag and so forth.
Separately, the corporate knowledgeable that its offline retailers community providing and system enterprise such as Paytm Soundbox, EDC, QR should not impacted by the RBI’s route to its affiliate financial institution. The fintech firm will additionally continue onboarding retailers to its platform.
“The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Other financial services such as loan distribution, insurance distribution and equity broking, are also not in any way related to Paytm’s associate bank and are expected to be unaffected by this direction,” the corporate stated.
Paytm stated that the RBI order additionally doesn’t affect consumer deposits of their financial savings accounts, wallets, FASTags and NCMC (National Common Mobility Card) accounts, they usually can continue to use the prevailing balances.
RBI has ordered PPBL to settle all pipeline transactions and nodal accounts (in respect of all transactions initiated on or earlier than February 29, 2024) by March 15, 2024 and no additional transactions could be permitted thereafter.
Mr. Sharma in the course of the name had stated that RBI order is a “big speed bump” and shared that he couldn’t perceive the set off for the transfer and he was not conscious of the precise nuance that triggered the order.
“On behalf of Paytm I can say it is more of a big speed bump but it is something that we believe that with partnership of other banks and capabilities that we have already developed, we will be able to see through in the next few days or quarters as the case will be,” he had stated.
