The Reserve Bank of India, which is the RBI , has announced a ban on Paytm Payment Bank. According to the RBI regulations many services of Paytm will stop after February 29.
RBI has said that Paytm has violated many rules and as a result this decision has been taken.
After this announcement by RBI, there was a huge fall in the shares of Paytm. Even before the start of trading on Thursday, Paytm shares fell by 20%.
Paytm’s share price has reached Rs 609, which is the lowest price in the last six weeks. RBI’s order may impact a large section of the society because Paytm has 16-17 percent share of the digital payment market and according to experts, crores of people may be affected by it.
In this regard, RBI issued a circular on Wednesday.
According to the circular, “Paytm’s audit report and reports of external auditors have found that Paytm has repeatedly violated the rules, hence under Rule 35A of the Banking Regulation Act, any credit-deposit to Paytm Payments Bank customer after February 29, Transactions, Wallets, and Fast Tag will not be able to be used.”
“Paytm will have to provide full facilities to its customers to withdraw and use their balance. This facility will also be available for those customers who have savings and current accounts of Paytm or use Fastag.
After February 29, Paytm Payments Bank Limited customers will not be able to use it and RBI has asked Paytm to settle the nodal account by March 15”.
Paytm’s parent company One97 Communication i.e. OCL has said that Paytm Payments Bank is working to comply with the instructions of RBI and now this work will be done more quickly.
The statement said, “Being a payments company, OCL works with many banks and not just Paytm Payments Bank. We are expediting this process and once the ban comes into effect, we will be completely dependent on our bank partners.”
The users will be able to withdraw their money from the Paytm Payment Bank for their future use even after 29 February as well.