Paytm Consumers might face transactions issues amid RBI's ban on Paytm Payments Bank
The Reserve Bank of India has reportedly taken stringent actions against Paytm Payments Bank which is based on the response due to consistent non –compliances and continued material supervisory concerns prevalent since few days .
Due to observed concerns, the central banking authority has barred the respective bank, not to onboard any new customers. In addition to accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags among others, effective from 29 February. Additionally, services like fund transfers and UPI facilities will not be available to customers after 29 February 2024.
IMPACT ON CUSTOMERS: After the scheduled date, the customers won’t be able to make further deposits, credit transactions, or any financial activity in their respective accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards.
Moreover, no new deposits will be accepted after the specified date, however, customers are still allowed to use the money in their accounts for withdrawals.Read Also : Coal India signs JV Agreement with BHEL
The recent move will impact consumer and merchant payments given its large network of merchants both online and offline who have deployed digital payment modes such as QR codes, point-of-sale machines etc. Merchants had the largest acceptance among the transaction accessibility. In December quarter, the company had processed 9.99 billion merchant transactions and consecutively it had issued third largest number of FASTags and UPI app users. Meanwhile, it processed 1.57 billion UPI transactions worth Rs 1.91 lakh crore as per NPCI data.Read Also : NCL exceeds 125 million tonnes of coal production
Paytm Payments Bank is an associate of the listed entity of One 97 Communications Ltd, holding 49% stake in the unit. The nodal accounts would also be terminated with due effect and the settlement of all pipeline transactions and nodal accounts should be completed by March 15, 2024. Any new further transactions would not be permitted.
As per the official statement released by the central bank authority, the Comprehensive System Audit report and subsequent compliance validation report of the external auditors have shown persistent non-compliance and continued material supervisory concerns are sustained.
After this RBI ban on Paytm payment bank's services, the shares of the respective entity have crashed to 20%.Read Also : Coal India First Aid Competition 2024 ' concludes at WCL
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