Paytm Crisis Action Against Company For Not Complying With Rules RBI on Payments Bank Ban

Paytm, one of the leading platforms for digital payments, has been in trouble for some time now. After February 29, Paytm Payments Bank along with some of its services are going to be completely banned. However, the company is constantly in talks with the government for some concessions. Meanwhile, on Thursday, the country’s central bank RBI issued a statement saying that the reason for imposing a ban on Paytm Payments Bank is the violation of rules by the company.

According to news agency Bhasha, the Reserve Bank of India said that Paytm did not follow the regulatory guidelines despite repeated requests and due to this strict action was taken against the financial technology company. RBI also clarified that there is nothing to worry about at the system level.

Report (via NDTV) says the central bank’s governor Shaktikanta Das has made it clear that Paytm’s lack of compliance with regulations does not pose any risk to the system.

After this action on Paytm, there are rumors that similar restrictions can be imposed on other apps as well. In such a situation, Das said, “There is no concern about the system at this time. Here we are talking about a specific institution, a specific payment bank. “

At the same time, Deputy Governor Swaminathan J said that the action taken against Paytm Payments Bank on January 31 was due to continuous non-compliance with the rules.

As part of the action, RBI has barred the company from adding new customers and asked it to stop services related to deposits, prepaid products and e-wallet after February 29.

Let us tell you that from March 1, you will not be able to take advantage of some facilities of Paytm Payments Bank. However, it is not that all its services will be stopped immediately. We have told you about which services will be stopped after the stipulated time limit and which you will be able to continue using. this post But detailed information has been given.

Das says that there are many questions and concerns in the minds of the people. In view of this, the Reserve Bank will come up with a detailed FAQ (Frequently Asked Questions) next week, which will make things clear.

When asked about the reasons for the action, Das refused to reveal anything.