RBI Action on Paytm Payments Bank: CAIT Asks Traders to Switch to Other Apps to Avoid Hassles Before Paytm Services Stop From February 29

Mumbai, February 4: After the Reserve Bank of India (RBI) ordered Paytm Payments Bank to halt services as of February 29 due to alleged norm breaches, the Confederation of All India Traders (CAIT) has encouraged traders to move from Paytm to alternative payment applications. In a statement released today, i.e. on Sunday, February 4, the CAIT emphasised the significance of risk reduction for dealers and urged them to look into alternative payment applications that abide by legal requirements.

Regarding the security and continuation of the financial services offered by the platform, CAIT national president BC Bhartia and secretary general Praveen Khandelwal expressed concerns in a statement following the recent limits placed on Paytm by the RBI. Paytm to Stop Working After February 29? Vijay Shekhar Sharma Allays Concerns.

Both urged Paytm users to explore direct UPI transactions or move to alternative payment applications in order to guarantee the smooth operation of transactions and protect financial assets. They mentioned that banks have their own payment applications. The RBI imposed strict limits on the firm due to hundreds of accounts opened on Paytm Payments Bank without sufficient identity, according to persons familiar with the case.

It was discovered that over one thousand individuals had connected their accounts to the same Permanent Account Number (PAN). Both the RBI and the auditors discovered throughout the verification steps that the compliance that the payments bank had supplied was inaccurate. Paytm Merchants Not Impacted by RBI Directive and Can Still Accept Payments; Paytm Soundbox, QR, EDC Machines Will Keep Working As Usual.

The RBI decided to stop accepting payments through Paytm Payments Bank due to concerns about data privacy generated by transactions processed through the Paytm parent app. Although deposits made by users into wallets, savings accounts, FASTags, and NCMC (national common mobility card) accounts are not immediately impacted, the company's operations will be dependent on other banks through February 29. "Our advisory is a precautionary measure to protect the financial interests of traders in light of recent developments. We encourage users to stay informed and take proactive steps to ensure the security of their funds", CAIT officials said in the statement.

(The above story first appeared on LatestLY on Feb 04, 2024 03:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).