On July 20, 2024, Paytm Payments Bank Limited (PPBL) stated that wallets with no balance and no transactions for more than a year would be closed.
According to PPBL’s website, users with dormant Paytm Wallets will be notified and given a 30-day warning period prior to the closure.
Paytm Accounts With Zero Balance and No Transactions Will be Closed
With effect from July 20, 2024, the closure is applicable to wallets that have had no transactions for a year or more and have no balance.
The Reserve Bank of India (RBI) ordered in March that after March 15, 2024, PPBL will not be able to approve credit transactions or take in new deposits.
Despite the RBI regulation, existing balances can still be withdrawn without any limitations.
This order has no bearing on the security of any current amounts kept in the wallets or accounts.
Customers have been warned by banks to either activate or close dormant wallets and accounts; if they don’t, they will automatically close by the deadlines.
Customers Must Use Wallets To Prevent Automated Wallet Closure
PPBL stressed that in order to prevent automated wallet closure, customers must continue to use their wallets.
In order to preserve the integrity and functionality of digital wallets within the financial system, the directive complies with RBI requirements.
This action is a component of larger regulatory initiatives aimed at streamlining digital financial services and guaranteeing adherence to banking regulations.
Paytm Can Fire Upto 6500 Employees To Save Rs 500 Crore
Paytm’s parent company, One97 Communications, is reportedly planning substantial layoffs, aiming to cut 5,000-6,300 jobs to manage costs better. This move comes as the company grapples with financial and regulatory challenges that have significantly impacted its revenue and profitability.
The layoffs, accounting for 15-20% of the workforce, could result in a reduction of 5,000-6,300 employees. This step is part of One97 Communications’ broader strategy to reduce employee costs by ₹400-500 crore in the current fiscal year. In FY23, the company had an average of 32,798 employees on payroll, with 29,503 actively working. The total employee costs rose by 34% year-on-year to ₹3,124 crore in FY24, making workforce reduction a critical measure for cost control.
