RBI banned Paytm from offering all forms of banking services due to issues of non-compliance and major supervisory concerns.
Starting February 29, Paytm Payments Bank can no longer accept new users. Existing users cannot operate Paytm wallets, Fastags, and mobility cards after this date.
The ban extends to other banking services, like funds transfer, UPI, and immediate payment services. However, withdrawals will be possible.
Paytm has flouted regulatory guidelines many times in the past. RBI also imposed a penalty of Rs 1 crore and Rs 5 crore in 2021 and 2023, respectively.
-Paytm’s operations and loan disbursal process will be disrupted. -Integrated services will be suspended. -Revenue could drop by up to 30 per cent to Rs 7,032 crore.
Paytm is a loss-making business with inconsistent cash flow. Investors who bought Paytm shares in the IPO are at a 77 per cent loss to date.