Paytm Payments Bank Limited (PPBL) is taking steps to comply with the directions imposed by the Reserve Bank of India (RBI). Last Friday, the central bank had directed PPBL to halt the onboarding of new customers temporarily, as per a Paytm exchange filing. The filing further states that existing customers can continue to use PPBL banking and payment services like before.
The filing states, “All existing users of Paytm UPI, Paytm Wallet, Paytm FASTag and bank accounts can continue to use these instruments, including debit cards and net banking, for payments.” New users can, however, sign up for the Paytm app and transact via creating UPI handles and linking them to their bank accounts or third-party payment instruments for transactions on the Paytm app.
Meanwhile, users will not be allowed to sign up for new PPBL wallets and savings or current accounts until further notice. The filing also noted, “Paytm believes that the measures imposed upon PPBL will not materially impact Paytm’s overall business. This direction does not have an impact on the services that Paytm provides in partnership with other financial services institutions.”
For the unversed, the central bank had directed Paytm Payments Bank to stop onboarding new customers on its platform with immediate effect in an order dated March 11. The bank has also been directed to appoint an income tax audit firm to conduct a comprehensive system audit of its IT system. As per the RBI, this action was based on certain material supervisory concerns observed in the bank.
“Onboarding of new customers by Paytm Payments Bank will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors,” the central bank said in a statement.
Meanwhile, Shares of the company on Tuesday opened 1.54 per cent lower at an all-time low of Rs 664.40 apiece on BSE.
The stock has been on a downward trend and has tanked over 49 per cent on a year-to-date basis. The shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
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