RBI gives 15-day relaxation to Paytm Payments Bank to stop deposits, credit transactions
Business | February 16, 2024 18:05 ISTRBI has asked Paytm Payments Bank to facilitate seamless withdrawal of customer deposits parked with partner banks.
RBI has asked Paytm Payments Bank to facilitate seamless withdrawal of customer deposits parked with partner banks.
The agreement will enable users of both systems to conduct instant, cost-effective fund transfers between India and Nepal.
The Indian Highways Management Company has advised highway users to get fastags from a list of 32 authorised banks, which does not include Paytm Payments Bank.
The ED is conducting a preliminary examination of the documents to decide whether to launch a formal investigation under the Foreign Exchange Management Act
The RBI had restricted Paytm Payments Bank from taking deposits, credits, or processing top-up transactions in customer accounts due to persistent non-compliances.
Paytm FASTag has encountered difficulties following recent regulatory constraints from the Reserve Bank of India affecting Paytm services.
Paytm President and Chief Operating Officer Bhavesh Gupta indicated a temporary halt in issuing new loans to address operational challenges stemming from RBI restrictions on Paytm Payments Bank.
On the BSE, the stock fell by 7.50 per cent to reach Rs 390.90 per share, while on the NSE, it declined by 7.28 per cent to Rs 391.45 per share.
Reserve Bank of India Governor Shaktikanta Das said there was "hardly any room" to review the action taken against Paytm Payments Bank.
Vijay Shekhar Sharma, the CEO of Paytm has reassured the users that the application will continue to function normally after the regulatory changes. Additionally, discussions with regulatory bodies are underway to ensure compliance and adherence to guidelines for UPI services.
In November 2020, PPSL had applied for a licence with the Reserve Bank of India (RBI) to operate as a payment aggregator under the guidelines on Regulation of Payment Aggregators and Payment Gateways.
This comes amid the RBI's order, which directed the bank to cease accepting deposits or top-ups in various customer accounts and instruments after February 29.
The RBI on January 31 directed the Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29.
RBI has put curbs on Paytm Payments Bank for accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more from February 29 onwards.
Joshi said that the reserve bank must have taken the action in the overall interest of the consumer and the economy.
Shares of One97 Communications opened at Rs 461.30, surpassing the previous day's closing price of Rs 451.60.
Since the Reserve Bank of India's directive, reportedly, there has been a surge in downloads of competitor apps, such as PhonePe and BHIM, while Paytm's downloads have declined.
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 stock plummeted by over 42 per cent over the past three days, resulting in a loss of Rs 20,471.25 crore in market valuation.
Paytm is actively collaborating with other banks to implement necessary changes in the backend for the continuity of its services.
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