RBI has taken major action against Paytm Payment Bank. RBI has banned taking Paytm Payment Bank deposits. Paytm Payment Bank customers will not be able to avail banking facilities from 29th February. Also, credit transactions have been banned.
Reserve Bank of India has decided to take strict action and close the facility of Paytm Payment Bank. It has been decided to ban all types of facilities including credit transaction, top-up facility, wallet and FasTag. Also, Paytm Payment Bank will not be able to add new customers.
Paytm Payments Bank Limited has prohibited from accepting deposits or top-ups in any customer’s accounts, prepaid instruments, wallets and Fastag after 29th February 2024.
Paytm Payment Bank has repeatedly been found violating the rules. RBI has taken strict action due to continuous disregard of rules. According to RBI, several deficiencies have been noticed in the audit.
Any major decision should be taken as a share. There is no doubt that the outcome of RBI’s action will be visible on Paytm’s shares. There would have been an improvement in Paytm’s shares, but the news has once again shocked.
Paytm’s company loss for the October-December quarter would have declined by Rs 221.7 crore. Compared to the previous year, the journey would have seen a lot of decline. A year ago, the loss would have been Rs 392.1 crore.
This restriction is applicable only on Paytm’s Payments Bank. All other UPI transaction services are available in the Paytm app. Paytm keeps scanning and making payment.