Paytm, a giant company providing online payment services, has received a major blow from the Reserve Bank of India (RBI). In fact, on Wednesday, a company providing digital payment and financial services has been banned from adding new customers. That means now no new customer will be able to join PPBL. The Central Bank has said that this decision has been implemented with immediate effect.
Deposit-topups will not be accepted: Reports say that along with the ban on adding new customers to Paytm Payment Bank, RBI has also ordered that Paytm Payments Bank will not be allowed to add any new customer after 29th February 2024. Deposits/top-ups into customer accounts, wallets and FASTag will not be accepted.
Bank customers will be allowed to withdraw or utilize the balance from their accounts including Savings Account, Current Account, Prepaid Instruments, FASTag, National Common Mobility Card (NCMC) without any restriction. That is, it has been clarified by RBI that the amount already deposited in savings bank account, current account and Fastag among others can be withdrawn or used without any restriction. RBI has taken this action against Paytm Payments Bank under Section 35A of the Banking Regulation Act-1949.
Why did RBI take action on Paytm?: Regarding this action taken by the Reserve Bank on Paytm Payment Bank, it has been said that after an audit report and report verified by external auditors, non-compliance and material non-compliance in the banking service of Paytm was found. Supervisory concerns have been exposed. Amidst all this, this decision has been taken and under the order, along with the ban on adding new customers, transactions in the accounts of existing customers have also been banned from 29 February 2024 onwards.
Impact may be visible on Paytm's shares: The impact of this decision of the Reserve Bank may be visible on Paytm's shares on Thursday. It is worth noting that even before this, a huge fall of up to 20 percent was seen in the company's shares. The reason behind this is that Paytm Payment Bank is asking for a plan to reduce small postpaid loans.
Not only this, a plan to reduce small size postpaid loans and increase large size personal loans and merchant loans was announced in the company's analyst meet. But, the brokerage houses did not like this plan of the company and they cut the revenue estimates of the company. Now the bad effect of this order of RBI on Paytm can be seen on the shares of the company.
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