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Paytm App Not Impacted By Directives; Banks May Partner After Due Diligence: RBI

Reserve Bank earlier said that the particular action is against Paytm Payments Bank and is not to be confused with Paytm App...The app is not impacted by this action.

Paytm App Not Impacted By Directives; Banks May Partner After Due Diligence: RBI

Press Trust Of India

POSTED ON February 09, 2024 3:32 PM

The Reserve Bank on Thursday said that the regulatory action is against Paytm Payment Bank Ltd (PPBL) and Paytm App will not be impacted by it. 

In a major action against PPBL, the Reserve Bank earlier last month directed the lender to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. 

"Just one clarification, this particular action is against Paytm Payments Bank and is not to be confused with Paytm App...The app is not impacted by this action," RBI Deputy Governor Swaminathan J said in the media interaction after the bi-monthly Monetary Policy Committee (MPC) meeting. 

Asked if banks can partner with Paytm wallet, he said it is a business decision and they have to carry out required due diligence as per their board-approved policy. 

"I am sure they will carry out due diligence if they have got to do a partnership," he said. 

During the briefing RBI Governor Shaktikanta Das said there are a lot of questions and concerns in the minds of people about PPBL, and the Reserve Bank will be coming out with a detailed FAQ (frequently asked questions) next week which will make things clear. 

When asked about the decision to impose the rather strong action of business restrictions, without going for other alternatives like appointing a director on the board as it has done in some cases in the recent past, Swaminathan said a "one size fits all kind of solution may not work in such situations". 

Commenting on RBI's clarification, a Paytm spokesperson said, "We assure our users and merchant partners that the Paytm app remains fully operational, and our services are unaffected." 

Paytm continues to lead in mobile payments innovation and the company is eager to enhance service offerings through partnerships with various banks, the spokesperson said. 

"We assure our merchant partners that Paytm QR, Soundbox and card machines will continue to work as always. Our dedication to providing seamless payment solutions and promoting financial inclusion across India remains as strong as ever," a spokesperson added.