Saikiran Uppuluri
Saikiran Uppuluri
In a significant move, the Reserve Bank of India (RBI) has directed Paytm Payments Bank to halt the acceptance of new deposits and credit transactions, including through popular payment methods like Unified Payments Interface (UPI), after February 29, 2024. This decision comes after the RBI’s ongoing concerns regarding the bank’s compliance with regulatory requirements.
The RBI’s restrictions, stemming from a comprehensive audit and subsequent reports, highlight continued non-compliance issues within Paytm Payments Bank. The central bank’s action is aimed at addressing these persistent issues, though specific details of the non-compliances were not disclosed.
In response to the RBI’s directives, Paytm Payments Bank, an associate of One 97 Communications Limited (OCL), is taking steps to comply with the orders. While Paytm operates in collaboration with various banks, it has announced plans to shift its focus solely to partnerships with banks other than Paytm Payments Bank. This shift is expected to have a significant financial impact on Paytm, with estimates of potential losses ranging from Rs 300 crore to Rs 500 crore in annual earnings. Despite this, Paytm remains optimistic about continuing its growth trajectory and improving profitability.
