Paytm Crisis Action Against Company For Not Complying With Rules RBI on Payments Bank Ban

Paytm, one of the leading platforms for digital payments, has been in trouble for some time. After February 29, Paytm Payments Bank along with some of its services are going to be completely banned. However, the company is constantly engaged in negotiations with the government for some concessions. Meanwhile, on Thursday, the country’s central bank RBI issued a statement saying that the reason for banning Paytm Payments Bank is the violation of rules by the company.

According to news agency Bhasha, the Reserve Bank of India says that Paytm did not follow the regulatory guidelines despite repeated requests and due to this, strict action was taken against the financial technology company. RBI also made it clear that there is nothing to worry about at the system level.

Report (via ndtv) says that Central Bank Governor Shaktikanta Das has made it clear that Paytm’s lack of compliance with the rules does not pose any risk to the system.

After this action on Paytm, people are rumored that similar restrictions can be imposed on other similar apps also. In such a situation, Das said, “There is no concern about the system at this time.” Here we are talking about a specific institution, a specific payments bank.

At the same time, Deputy Governor Swaminathan J said that the action taken on January 31 against Paytm Payments Bank has been taken due to continuous non-compliance of rules.

As part of the action, RBI has barred the company from adding new customers and has asked it to stop services related to deposits, prepaid products and e-wallet after February 29.

Let us tell you that from March 1, you will not be able to avail some facilities of Paytm Payments Bank. However, it is not that all its services will be stopped immediately. We have given detailed information on this post about which services will be stopped after the fixed deadline and which ones you will be able to continue using.

Das says that people have a lot of questions and concerns in their minds. In view of this, the Reserve Bank will come out with a detailed FAQ (Frequently Asked Questions) next week, which will make things clear.

When asked about the reasons for the action, Das refused to divulge anything.