After RBI order, Paytm has banned this service for a few days, see details – News India Live

Paytm: Mobile payment firm Paytm has said that the company has stopped operating its loan giving platform for a few weeks. However, the company is engaged in talks for partnerships with some banks. Paytm has taken this big step a day after the Reserve Bank of India banned several services of Paytm Payments Bank.

What order did RBI give?

On January 31, 2024, it was reported that the Reserve Bank of India (RBI) directed Paytm Payments Bank Limited (PPBL) not to accept deposits or top-ups to any customer account, prepaid mode, wallet and Fastag after February 29. Have given. 2024. The instruction was given. After this news, yesterday on February 1, there was a huge fall in the shares of Paytm and a fall of up to 20 percent was seen.

After February 29, almost all the services of Paytm Payments Bank will stop.

The RBI order to shut down almost all services of Paytm Payments Bank after February 29 is expected to impact the company’s annual operating profit by Rs 300-500 crore. The Reserve Bank has taken this step against Paytm Payments Bank Limited (PPBL) following a comprehensive system audit report and compliance verification report of external auditors. Earlier in March 2022, RBI had barred PPBL from adding new customers with immediate effect.

What is in the RBI decision?

RBI said, “No deposit or credit transaction or top up will be allowed in any customer account, prepaid mode, wallet, Fastag, NCMC card etc. after February 29, 2024. However, no interest, cashback or refund will be allowed.” Deposit can be made at any time. Giving this information in a statement on Wednesday, RBI said that concerns were being continuously raised regarding non-compliance of rules in Paytm Payments Bank. After this, the need for further action was felt and RBI took this decision.

In the clarification that came from Paytm after the RBI order, it has been said that the company is fully cooperating as per the instructions of RBI. We have paused new loan issuance for a few weeks and have seen some disruption.

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