Joshi said that the reserve bank must have taken the action in the overall interest of the consumer and the economy.
The Reserve Bank of India issued a directive on January 31, which mandated an immediate halt to the onboarding of new customers by Paytm Payments Bank and called for a cessation of its key banking services post-February 29.
The central bank's directive restricts Paytm Payments Bank from accepting deposits or top-ups after February 29.
The RBI had raised concerns about the creation of several accounts at Paytm Payments Bank without proper identification, suspecting potential money laundering activities.
Paytm Payments Bank is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more after February 29, 2024.
The RBI said that customers are permitted to withdraw or utilise balances from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards.
Paytm said it is designing an innovative digital experience on its app allowing users to manage their overall spends and have full control over the card usage.
Paytm Wallet Users Alert! Do you add money to your Paytm Wallet from Credit Cards for transactions like bill payments, shopping etc? This is important for the users to know that Paytm has changed the rule on adding money to the wallet with your credit card. The new rule may come into effect from today, December 30, 2019.
Paytm has partnered with Citi to launch its Paytm First Credit Card that is India's first card with 1 per cent universal cashback and no restrictions on earning categories.
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