Paytm has clarified that RBI’s latest operating restrictions on Paytm Payments Bank will not impact existing deposits in savings accounts, mobile wallets, FASTags and NCMC cards. Customers can continue utilizing current balances across linked payment instruments.
However, fresh deposits and credit transactions stand barred after February 28th. The company stated it remains committed to quickly addressing RBI’s concerns to restore normal operations.
Update: Paytm Payments Bank Limited, an associate of Paytm receives RBI directions. Paytm to expand its existing relationships with leading third-party banks to distribute payments and financial services products.
— Paytm (@Paytm) January 31, 2024
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Paytm said, “The Company (OCL) would like to update that it has been informed by its associate, Paytm Payments Bank Limited (“PPBL”), that the Reserve Bank of India (“RBI”) vide its Press Release dated January 31, 2024, has given it further directions under section 35A of the Banking Regulation Act, 1949. PPBL is taking immediate steps to comply with RBI directions, including working with the regulator to address their concerns as quickly as possible. The Company has been informed that this does not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances,”
Acceleration of Non-PBB Bank Partnerships
As a umbrella payments firm, Paytm partners with multiple banking channels beyond Paytm Payments Bank to enable transactions via QR codes, soundboxes, cards machines etc. It now plans to rapidly expand partnerships with third-party licensed banks offering superior compliance.
Paytm affirmed its next growth phase centres on diversified banking alliances rather than relying solely on the payments bank entity facing regulatory heat currently. Tie-ups with larger private banks and even public sector giants will get prioritized amid ongoing business uncertainty.
