The Reserve Bank of India issued a notification on Thursday regarding the prohibition of accepting deposits or top-ups to the Paytm Payments Bank and its associated services.
One day following the RBI’s announcement banning Paytm Payments bank, founder Vijay Shekhar Sharma used his X (formerly Twitter) account to reassure users that the app would maintain its normal operations.
Addressing every Paytm user in a post, Sharma expressed gratitude for their unwavering support. He affirmed that the app remains functional and will continue to operate as usual beyond February 29. Regarding the RBI’s ban, Sharma emphasized that for every challenge, there exists a solution, and Paytm is fully committed to serving the nation in complete compliance.
Sharma concluded his post by expressing confidence that India would continue to receive global recognition for its payment innovation and inclusion in financial services, with PaytmKaro being its strongest advocate.
The Reserve Bank of India issued a notification on Thursday, announcing a ban on accepting deposits or top-ups to the Paytm Payments Bank and its associated services. The RBI cited “persistent non-compliance and continued material supervisory concerns in the bank” under Section 35A of the Banking Regulation Act, 1949, as the primary reason for the ban.
Furthermore, the RBI prohibited Paytm Bank from onboarding new users starting from February 29, 2024. Subsequent to the announcement, Paytm stocks experienced a decline.
After the notification, there were various misconceptions regarding the ban. However, it’s important to clarify that the ban on Paytm Payments Bank will only impact users currently utilizing Paytm-linked services such as wallets, FASTags, NCMC (National Common Mobility Card) cards, and others. Users will still retain the ability to withdraw their funds.
Founded by Vijay Shekhar Sharma in 2010, Paytm is an Indian multinational fintech company that has garnered numerous awards due to its innovation and user-friendly interface. As of the fiscal year 2022-23, the company reported a gross merchandise value of Rs 13.2 lakh crore.
