By placing multiple penalties on Paytm Payments Bank, the Reserve Bank of India delivered a serious blow to the company. The highest banking authority declared that as of February 29, 2024, no transactions from Paytm Payments Bank will be accepted. Users of Paytm have undoubtedly had a lot of queries about this. Here, we attempt to address.
The Reserve Bank of India's regulation prohibiting Paytm Payments Bank, the company's subsidiary, from taking new deposits beginning in March is expected to have a negative effect on the company's yearly earnings, according to a statement released by Paytm on Thursday. The business declared that it is acting quickly to comply with RBI orders and that it is working with the regulator to resolve issues as soon as possible.One97 Communications Ltd. (OCL), the parent firm of Paytm, declared its intention to completely switch to other bank partners, leaving Paytm Payments Bank Limited out of the picture.
We will now expedite the plans and switch over entirely to other bank partners. OCL will not be collaborating with Paytm Payments Bank Limited going ahead; instead, it will only deal with other banks. The fintech behemoth stated in a statement on Thursday that the next stage of its journey is continuing to grow its payments and financial services business, but only in collaboration with other banks.