We already know that the Reserve Bank of India has banned Paytm Payments Bank from accepting new deposits or conducting credit transactions after February 29.
It appears that this move by the RBI is anticipated to not have a significant impact on payments, as per a latest media report.
Not Much Impact On Payments
According to the country’s central bank, the ban will not have much impact as most of the users of the Paytm UPI app have already linked their accounts with other banks.
The recent data from banking industry sources indicates that out of around 90 million Paytm UPI app users, 75 million of them have also installed other UPI apps, and only 15 million users are unique to Paytm UPI app.
So, it is expected that the restrictions on Paytm Payments Bank may not have a substantial impact since 90 percent of Paytm’s UPI users have accounts linked with other banks.
Besides this, most of the users have multiple backend accounts which are also out of the scope of the central bank’s curbs.
Hardly Any Room For Review
All this started on January 31 when the Reserve Bank of India (RBI) prohibited Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags after February 29.
According to this development, RBI mandates PPBL to stop accepting deposits or top-ups in any customer accounts, wallets, FASTTags, and other instruments after February 29.
There is limited scope for reconsidering the measures taken against Paytm Payments Bank, said Shaktikanta Das, the Governor of Reserve Bank of India, while Speaking during a press interaction in New Delhi.
Further emphasizing he said that the central bank takes action against regulated entities only after conducting a thorough evaluation.
It appears that there is hardly any room for a review of the action, Das reiterated.
In addition to this, now the government seems to be scrutinizing the foreign direct investments from China in the payment aggregator subsidiary of the fintech company.
Now they are focusing on Chinese investments in Paytm Payments Services Ltd (PPSL) as it has sought a license from the RBI to operate as a payment aggregator, according to a PTI report.
