Earlier this week, the Reserve Bank of India (RBI)
Paytm
Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account. The ban includes prepaid instruments, wallets, and FASTags, among others after February 29, 2024. RBI said that the action against PPBL followed a comprehensive system audit report and subsequent compliance validation report of external auditors.
Assuaging user concerns, Paytm has said that post the recent directives from the Reserve Bank of India (RBI) on PPBL, Paytm UPI services will remain unimpacted.
The fintech company is accelerating its partnership with other banks to offer various payment products to its customers including UPI.
Addressing analysts on February 1,
Bhavesh Gupta
, President and COO at Paytm, said that there are a set of products that
Paytm app
offers to its users including UPI, Wallets, FASTags, and NCMC, etc. and the company is committed to make sure that it is able to offer alternatives to the customers on the app. Those customers could be of its associate bank or the customers who otherwise come to the app for the services in getting acquired in the system.
He also informed that the company is preparing to migrate the merchants on its platform accepting UPI payments from its associate bank to other banks. The company is in talks with other banks and is evaluating. Once it is done, it will move the existing merchants who are accepting payments on UPI to any other bank or banks. There are 40 million merchants out there on UPI and acquiring all those merchants is a large set of migrations to happen. It needs guidance from both the NPCI and RBI and the discussions have started, he said.
"Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance," the RBI release stated.
Also, Paytm app and its services continue to remain operational. Most of the services offered by Paytm are in partnership with various banks (not just its associate Bank).
English (US) ·