Paytm Bank Banned

Paytm Bank Banned Faces Regulatory Action: What Does it Mean for Users?2024

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Paytm Bank Banned: Paytm, a popular company in our country, is widely used by people for various transactions. Paytm not only offers payment services but also operates its own Paytm Payments Bank, with many users linked to it. However, users connected to Paytm Bank are now facing distressing news as the Reserve Bank of India (RBI) has taken significant action against Paytm Payments Bank Limited.

Paytm Bank Banned

The Reason Behind This Action Taken By RBI is that RBI found Paytm Payment Bank Limited has violated the regulations of bank according to the audit reports. and the users associated with this bank are unaware about the changes that may occur following RBI’s Intervention.

In this blog, we are going to provide you with the complete update on the Paytm Bank Ban so that you can be well-informed about the situation. Stay tuned till the end to get a comprehensive understanding of the Paytm Bank Ban.

What Action did RBI Take Against Paytm?: Paytm Banned According to the Reserve Bank of India (RBI), Paytm has breached several banking regulations, leading to strict measures by the RBI. The RBI states that Paytm’s audit report and reports from external auditors revealed multiple violations of rules and regulations.

As a result of this, the RBI has decided to halt the facility for Paytm Payments Bank customers to credit or deposit money starting from February 29. After this date, users with accounts in Paytm Payments Bank will not be able to deposit or withdraw any funds. Additionally, RBI has imposed restrictions on various other services provided by Paytm Payments Bank.

Furthermore, RBI has put a hold on the Paytm FASTag and Paytm Postpaid services. However, users can still utilize the remaining balance in their Paytm FASTag until it runs out, but they won’t be able to recharge it using Paytm Bank.

Will the Paytm Bank App Shut Down?

After RBI’s action, many users are concerned about whether the Paytm app will cease to function. But, there is no need to worry. You can continue using your Paytm app as usual for services such as UPI payments, recharges, electricity bill payments, water bill payments, Paytm Gold, Paytm Money, and more. To avail of these services, you will need to link another bank, such as HDFC, Axis, SBI, etc., for transactions.

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Losses in Paytm’s Share Prices

Following RBI’s strict action, Paytm’s shares in the stock market have witnessed a decline of up to 20%. Paytm operates in the stock market under the name One97 Communication Limited, and as of February 2, 2024, each share is trading at INR 487.

However, Paytm CEO Vijay Sharma reassures users that even after February 29, Paytm users will continue to have access to all services. He mentioned that he is doing good efforts to establish partnerships with other banks, so that the payment customer have good experience in future and not to face such problems.

We hope that this above information is useful for you, share this information with your friends and families so that they can also take use of this blog.

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