The development comes amid speculations over the company’s operations following Reserve Bank of India’s action against its associate Paytm Payments Bank. The Payments bank was asked to stop key operations from March 1 due to non-compliance.
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: The central bank has ordered Paytm Payments Bank Ltd to halt most of its business including taking further deposits, conducting credit transactions and carrying out top-ups on any customer accounts, prepaid instruments, wallets, and cards for paying road tolls after Feb 29
The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement.
Paytm Payments Bank: Sources said RBI in 2021 detected serious KYC Anti Money Laundering violations and the bank was directed to address these deficiencies. However, they continued to persist. The compliances submitted by the bank were found to be incomplete and false on many occasions.
The RBI imposed restrictions, prohibiting the bank from accepting new deposits or conducting credit transactions after February 29.
Vijay Shekhar Sharma stated in a blog post that Paytm's app will continue to function normally beyond February 29 for existing users to withdraw funds.
Paytm Payments Bank Limited is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more from February 29 onwards.
Paytm faces a directive from the RBI to stop major payment services, causing concerns for FASTag users; while services continue normally until February 29, Paytm is working on solutions for a seamless customer experience. Here are the details.
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.
One 97 Communications' consolidated revenue for the quarter rose by 38 per cent, reaching Rs 2,851 crore compared to Rs 2,062 crore in the same period a year earlier.
PM Narendra Modi and Sri Lankan President Ranil Wickremesinghe signed an agreement in 2023 on Unified Payments Interface acceptance in Sri Lanka during Wickremesinghe's two-day visit to India.
NPCI has set a deadline of December 31 to deactivate inactive UPI IDs, urging users to check and update their linked mobile numbers to prevent unintended fund transfers and enhance digital payment security.
A spokesperson for Paytm, known for pioneering QR codes, soundbox, and mobile payments in India, has emphasized the widespread acceptance of Paytm, with increased adoption among both merchants and consumers.
To achieve EBITDA-level profitability, Paytm has reportedly generated free cash for the past two quarters. The company's leadership further anticipates that this trajectory will persist, and further emphasizes the potential of AI-driven initiatives to contribute to sustained financial success.
Paytm has continued focusing on merchant loans that are lent to MSMEs as business loans. These loans are extended for business purposes to support small merchants, they remain unaffected by the recent regulatory guidance.
Wondering if Google Pay now adds fees for mobile recharges? Here's the scoop on everything you need to know.
The National Payments Corporation of India (NPCI) has instructed apps like Google Pay, Paytm, and PhonePe to deactivate inactive UPI IDs and numbers by December 31.
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