Nation

DNA Exclusive: Is Paytm Really Going To Be Banned? Analysis Of RBIs Action

February 2, 2024
Bharat Times

NEW DELHI: Paytm, the popular fintech company, is facing a major setback as the Reserve Bank of India (RBI) has cancelled the services of its Paytm Payments Bank (PPBL) due to some irregularities. This has left more than 300 million Paytm users in a dilemma, as they wonder whether they will be able to use the Paytm app for their transactions or not. 

In today’s DNA, Zee News analysed the Reserve Bank Of India’s clampdown against fintech giant Paytm.

However, all these services will be discontinued from 29 February, as per the RBI’s order. The RBI has invoked section 35A of the Banking Regulation Act, 1949, and directed PPBL to stop its operations and settle with its customers by 15 March. The settlement will include matters related to interest, cashback or refund on the accounts.

The RBI’s action came after it found some irregularities in PPBL, based on audit reports. The RBI did not disclose the nature of the irregularities, but it is speculated that they may be related to the violation of the norms for payments banks. Payments banks are a new category of banks that can accept deposits up to Rs 1 lakh per customer, but cannot lend money or issue credit cards. They can only offer basic banking services, such as savings accounts, current accounts, remittances and bill payments.

Watch Tonight’s DNA for a detailed analysis on Reserve Bank Of India’s clampdown against fintech giant Paytm.