RBI crackdown on Paytm Payments Bank got you worried? Paytm Wallet, Paytm FASTag affected?
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Check what Paytm said after the RBI imposed restrictions on Paytm Payments Bank services. Are Paytm Wallet, Paytm FASTag, and fund transfers affected? Paytm reveals how it affects you.
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On January 31, RBI asked Paytm Payments Bank to restrict its services by February 29, 2024, due to persistent non-compliance.
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Paytm, in a statement, said that it "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."
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Paytm also said that it is now working and taking immediate steps as directed by the central bank. Additionally, services will not be restricted to business owners and merchants in India either.
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Paytm said, “One 97 Communications Limited’s (OCL) offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual.”
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The official company statement added that Paytm’s parent company, One 97 Communications will not be working with Paytm Payments Bank henceforth.
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Instead, Paytm will extend its services by partnering only with other larger banks for all its services. "Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited," it said.
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Paytm statement also said, "With regard to the direction on termination of nodal account of OCL and Paytm Payments Services Limited (PPSL) by February 29, 2024, OCL and PPSL will move the nodal to other banks during this period."
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In effect, after February 29, Paytm Payments Bank services will not be available as per RBI order.
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And what will the RBI move cost? Paytm said, "Depending on the nature of the resolution, the Company expects this action to have a worst case impact of Rs. 300 to 500 crores on its annual EBITDA going forward."