Digital Payments and Services provider App Paytm is working and will continue to work as usual even after 29th February 2024, Company CEO Vijay Shekhar Sharma said on Friday. The Founder and CEO of One97 Communications Limited, who owns Paytm brand, on social media platform Twitter shared that the company is committed to serving the nation in full compliance. Reserve Bank of India has ordered Paytm Payments Bank Limited to settle all Pipeline transactions and Nodal accounts in respect of all transactions initiated on or before 29th February, 2024 by 15th of March, 2024 positively and no further transactions would be permitted thereafter.
Reserve Bank of India has barred Paytm Payments Bank Limited (PPBL) from accepting Deposits or Top-ups in any customer account, prepaid transactions, wallets, and FASTags, among others after 29th February, 2024. The Paytm top management officials during an earning call on Thursday said they are working on a migration plan for Paytm Payments Bank Limited, Wallet, FASTag etc. users with other banks. The financial technology company will also continue to onboard merchants on its platform.
The Company sees the Reserve Bank of India order to have an impact of Rs. 300-500 Crore on its Annual Operational profit as its customers will not be able to add money to their Wallets and FASTag etc. Separately, the company informed that its offline merchants network offering and device business like Paytm Soundbox, EDC, QR are not impacted by the Reserve Bank of India’s (RBI) Direction to its Associate bank.
