Is paytm banned in India by RBI?

Paytm will keep working beyond February 29, assures founder Vijay Shekhar Sharma

Due to compliance concerns, the Reserve Bank of India (RBI) sent out a letter on Wednesday prohibiting Paytm Payments Bank from offering banking services beyond February 29. Vijay Shekhar Sharma, the founder of Paytm, expressed optimism about India’s advancements in the digital financial space and gave consumers the assurance that Paytm Payments Bank services will seamlessly transition to other lenders.(Is Paytm Banned by RBI in India)

To reassure users, Paytm founder Vijay Shekhar Sharma assured X on Friday that the app will continue to function beyond February 29. A harsh blow came on Wednesday when the Reserve Bank of India (RBI) sent out a letter prohibiting Paytm Payments Bank from offering banking services beyond February 29 due to noncompliance. The precise reason the bank was subject to such severe penalties was not made public by Sharma or the central bank.

The business has since assured customers that there won’t be any disruptions to services starting on March 1 and that all Paytm Payments Bank-related services would be moved to other lenders.

“I, along with the whole Paytm team, thank you for your unwavering support. There is always a solution to a problem, and we really want to serve our country to the best of our abilities,”. 

the message stated

Sharma expressed optimism about India’s sustained advancements in the field of digital banking. He said, “India will keep winning global accolades in payment innovation and inclusion in financial services,” highlighting Paytm as a major factor in this expansion.

“We will make sure that we will get out of this situation,” Sharma stated on Thursday. “This is an opportunity for us to come out better, stronger, abler, and more capable for the regulator’s eye.”

During the call, the management of One 97 Communications, a bank affiliate, hinted that problems with implementing technology and compliance measures could have resulted in fines from the regulator.

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Paytm crisis: Vijay Shekhar Sharma says “Indian startup dream must overcome every situation collectively”

Many founders have come out in Vijay Shekhar Sharma’s support post RBI‘s

Several founders have publicly endorsed Vijay Shekhar Sharma following the RBI’s order prohibiting Paytm Payment Bank from providing banking services.

Heading into a regulatory crisis following restrictions placed on Paytm Payments Bank by the Reserve Bank of India (RBI), the founder and CEO of the fintech company bearing its name, Vijay Shekhar Sharma, told a gathering of founders that “the Indian startup dream must overcome every situation collectively.”

“I appreciate all of your faithful bolster, everybody. Of course, a more broad discourse have to be be useful. “Nothing ought to halt us from seeking after what we have all worked so difficult to construct over the a long time,” he announced. 

The Indian Startup Dream has to work together to conquer every obstacle. Here, permanently,” he said.

On January 31, the RBI placed significant business limitations on Paytm Payments Bank.

The central bank claimed that it was forced to take such a dramatic measure since a validation report from the external auditors showed “persistent non-compliances and continued material supervisory concerns in the (Paytm Payments) Bank.”

With the special case of intrigued, cashbacks, or discounts that will be credited at any time, the RBI pronounced in its arrange against Paytm Installments Bank that no more stores, credit exchanges, or top-ups will be allowed in any client accounts, paid ahead of time disobedient, wallets, FASTags, NCMC cards, etc. after February 29, 2024.

Paytm notified exchanges that it is “taking immediate steps to comply with RBI directions, including working with the regulator to address their concerns as quickly as possible” in response to the stringent action.

Paytm’s stock fell 20% in the first hour of trading on February 1.

The RBI order shocked the fintech sector, and several of the business’s founders publicly defended Paytm while denouncing the action as one of the most severe the regulator has taken against a fintech startup in recent memory.

It’s extraordinary that the RBI would fair go destroy a bank in this way. When Yes Bank experienced impressively more genuine issues, they mediated and constrained other banks to step in. They made beyond any doubt the exchange went well in 15 days in arrange to protect the framework. Deepak Shenoy, CEO of Capitalmind, said, “But presently they favor to let all the banks clients, merchants, and accomplices endure and make an superfluous certainty issue, and drive the trade down.” Deepak Abbot, co-founder of Indiagold and previous Senior VP-Products at Paytm, moreover came out in bolster of the company. 

“They will develop much more grounded and way better having seen @Paytm from both the interior and the exterior. Driving banks collect to collaborate with One97 (Paytm). In my conclusion, this will give One97 with a more noteworthy chance to set up itself as a favored stage for the offers of a few banks in a single app,” he proceeded.