In a huge bluster to Paytm Payments Bank Limited (PPBL), the Reserve Bank of India (RBI) on last day of January 2024 barred it from offering all its core services, including accounts and wallets, from March. The RBI has Ordered and Instructed Paytm Payments Bank Limited to stop accepting fresh deposits in its Accounts or popular Wallets after 29th February 2024, effectively crippling the company’s business.
No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after 29th February, 2024 other than any interest, cashbacks, or refunds which may be credited anytime, said Mr. Yogesh Dayal, Chief General Manager with the Central Bank of India, in a Press statement. While this action is technically not a cancellation of Paytm Payments Bank’s Licence, it practically constricts the Company’s operations to a great extent.
The Paytm Payments Bank Limited has currently hosts over 330 million Wallet accounts, playing a pivotal role in Paytm’s Ecosystem. Given the current Monthly Transacting Users (MTU) for Paytm is 100 million and the earlier ban was for onboarding new customers, Paytm could continue leveraging the Paytm Payments Bank Limited’s (PPBL) customer base for selling payments and financial products, according to Macquarie, a Leading Global Research Firm situated and headquartered in Australia.
