On Thursday, the Reserve Bank of India released a notice regarding the prohibition of accepting deposits or adding funds to Paytm Payments Bank and its associated services.
A day after the ,RBI announcement banning Paytm Payments bank founder Vijay Sharma took to his X (formerly Twitter) account to assure users that the app will continue to work as usual.
In a message directed to all Paytm users, Sharma expressed gratitude, stating that he and every Paytm member appreciate the unwavering support from users. He assured that the app is operational and will continue to function seamlessly beyond February 29. Addressing the RBI ban, Sharma emphasized that every challenge has a solution, and Paytm is fully dedicated to serving the nation in strict compliance with regulations.
Sharma ended his post by saying that India will keep winning global accolades in payment innovation and inclusion in financial services – ‘with PaytmKaro as the biggest champion of it’.
On Thursday, the Reserve Bank of India issued a notification regarding the ban on accepting deposits or top-ups to the Paytm Payments Bank and linked services. RBI cited ‘persistent non-compliance and continued material supervisory concerns in the bank’ under Section 35A of the Banking Regulation Act, 1949 as its primary reason.
Besides, RBI also banned Paytm Bank from onboarding new users from Feb 29, 2024. Following the announcement, Paytm stocks took a hit.
In conclusion, Paytm stands as a testament to innovation and user convenience since its founding by Vijay Shekhar Sharma in 2010. The company’s consistent recognition through various awards underscores its commitment to excellence. With a reported gross merchandise value of Rs 13.2 lakh crore in the fiscal year 2022-23, Paytm continues to make a significant impact in the fintech industry, reflecting its enduring success and adaptability.