Mumbai, March 6: RBI put restrictions on Paytm Payments Bank Limited last month due to non-compliance issues and continual material supervisory concerns. After the ban, Paytm announced that some of its services would keep functioning even after the RBI ban on its banking services. Following the restrictions, the Indian fintech company went through a major crisis, which affected the share prices, employees and the CEO Vijay Shekhar Sharma, who had to resign from the PPBL board from the Part-Time non-executive Chairman and board membership. 

According to the report by Times Now News, the Governor of RBI, Shaktikanta Das, opened up about the March 15 deadline given to Paytm. The Governor of the Reserve Bank of India reportedly said that users linked to the PPBL should link their accounts to other banks before the due deadline. He reportedly added that the deadline given to the fintech firm Paytm is sufficient. RBI restricted Paytm Payments Bank Limited from accepting payments, doing credit transactions and topping up the wallets or accounts until the deadline. Indian Startup Founders Say They Will Continue To Oppose Google Imposing 11% to 26% On In-App Payments.  

The report mentioned that the RBI had issued FAQs in the middle of February 2024 to provide clarity on specific issues. The RBI Governor said, "We thought it is appropriate to give one month of time." He added that as far as Paytm is concerned, 80% to 85% of Paytm users are also connected to other banks along with Paytm Bank or to different bank entirely. The RBI Governor also added that the action was not taken against any fintech company, and they have done nothing regarding fintech firms. He said, "We are supporting them." Meta Joins Atal Innovation Mission To Set ‘Frontier Technology Labs’ to Democratise Future Technologies in Schools.

The official deadline given to Paytm was February 29, but later, it was extended to March 15. According to the report by ET, RBI does not want to slow down the growth of India's financial sector, however it has deepened supervision to prevent any financial mishaps. A few days ago, the Financial Intelligence Unit-India (FIU-IND) imposed Rs 5.49 crore on Paytm for violating anti-money laundering laws. 

(The above story first appeared on LatestLY on Mar 06, 2024 08:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).