02-Feb-2024
2 mins read
India’s famous fintech company One97 Communications Limited Brand “Paytm” is under RBI’s restrictions. Reserve Bank of India on Wednesday, January 31, 2024 barred Paytm Payments Bank from accepting the further customer deposit from March 1, 2024.
An audit revealed persistent non-compliance and continued material supervisory concern. Earlier, almost two years ago RBI restricted Paytm Bank from acquiring new customers. This restriction is still in force.
Paytm App Continue to Work Smoothly
Paytm has a wide user base in the country so it is obvious that users might be concerned about their money. This restriction on Paytm Bank may not impact the existing customers and the withdrawal process is still on. The UPI transaction will also continue to work on the app.
After a short survey, it is known that there are no restrictions on the usage of the app to transfer money or withdraw from its wallet and account.
However, there will be restrictions on inward or credit transactions from March 1, 2024. It means account holders can freely transfer money out of their wallet and Bank account but cannot receive money from March 1, 2024.
On February 2, 2024 Paytm Payments Bank assured customers in Email and Text “Your Money is Safe” It also acknowledged that while as per RBI directives, customers may not be allowed to add money to their wallets post February 29, 2024.
Paytm CEO Vijay Shekhar Sharma Comment
Paytm CEO Vijay Shekhar Sharma thanked their customers for their support on X. He also assures customers about the Paytm application which will continue to work beyond February 29, 2024.
After the news, On February 1, 2024 the shares price of Paytm stock opened gap down 20% and hit a lower circuit. Investors panicked and today also Paytm stock fell 20% and hit another lower circuit.