Paytm in Limbo: Amid Uncertainty, RBI Rejects Concession For Company

Paytm in Limbo: Amid Uncertainty, RBI Rejects Concession For Company

The Reserve Bank of India has refused to interject in the matter

Juviraj AnchilUpdated: Wednesday, February 07, 2024, 09:16 AM IST
article-image
Paytm | Reuters

In a major blow to the prospects of Paytm and its bank services, the Reserve Bank of India has refused to interject in the matter with a concession for the company in the ongoing fiasco. This comes in after the co-founder of the company Vijay Shekar Sharma, held a meeting with the central bank officials, to try and assuage the situation.

Earlier, the central bank threw a spanner into the flow of functioning of the entity, terminating it's banking services sighting irregularities.

Following the recent RBI decision to terminate Paytm's nodal accounts after February 29, One97 Communications Ltd (OCL), the parent company of Paytm, has announced a strategic shift, indicating a move away from dependency on Paytm Payments Bank Ltd (PPB).

As the deadline approaches for migrating nodal accounts from Paytm Payments Bank, Paytm now looks at future, where it may have to proceed without it's banking arm.

The once promising start up has more than 3 crore merchants on its platform. Amongst them, about 20 per cent, which translates to nearly 60 lakh, use PPBL as their settlement account. In addition, for most of the UPI addresses on the Paytm app, the sponsor bank – technically called payment service provider (PSP bank)

RECENT STORIES

After US Markets, Tech Boom Nudges Japan's Nikkei 225 To 40,000 For The First Time

After US Markets, Tech Boom Nudges Japan's Nikkei 225 To 40,000 For The First Time

Global Rating Agency Moody's Raises India's 2024 Growth Forecast To 6.8%

Global Rating Agency Moody's Raises India's 2024 Growth Forecast To 6.8%

Stock Market Opening March 4: Indices In Green; Sensex At 73,920.60 & Nifty At 22,409.80

Stock Market Opening March 4: Indices In Green; Sensex At 73,920.60 & Nifty At 22,409.80

Punjab's GST Mop-Up Rises 16% To Over ₹19,000 Cr Till February

Punjab's GST Mop-Up Rises 16% To Over ₹19,000 Cr Till February

Bharat Textile Expo To Be An Annual Affair, Says AEPC Chairman

Bharat Textile Expo To Be An Annual Affair, Says AEPC Chairman