Paytm says app, merchant operations to work uninterrupted, looking at tie-ups for financial services

Paytm

Paytm, publicly traded as One 97 Communications Limited, on March 13 said its app-based and merchant services will continue uninterrupted and it is expanding financial services distribution through partnerships.

Its app-based services, which include the Paytm, and merchant devices like Paytm QR, Soundbox and card machines continue to work uninterrupted, the company said in a statement.

“We are expanding our financial services distribution platform in partnership with leading institutions. Paytm is committed to creating an inclusive next-generation financial ecosystem for our users across the country,” the company said.

At 11.58 am, the Paytm stock was trading at Rs 350.95 on NSE, down 4.99 percent.

"A recent regulatory directive applies specifically to PPBL and does not directly impact OCL or the broader Paytm ecosystem. This means services provided by OCL/Paytm, including our app, QR, Soundbox, and card machines, continue to operate as usual, "company statement added.

On January 31, the RBI imposed major business restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and doing credit transactions after February 29. The regulator found major irregularities in KYC, which exposed the customers, depositors and wallet holders to serious risks.

The Reserve Bank of India (RBI) on February 16 extended the deadline for Paytm Payments Bank Ltd (PPBL) to stop accepting fresh deposits and do credit transactions to March 15 from February 29, as announced earlier.

However, the regulator’s latest press release or the FAQ (frequently asked questions) do not give any significant concessions or relaxations to the embattled payments bank.
“No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15, 2024, extended from the earlier stipulated timeline of February 29, 2024, other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime,” the RBI said in a release.

On February 16, the RBI issued an FAQ on action taken against Paytm Payments Bank Ltd (PPBL), outlining the different aspects of the directions and assuring that customers of the bank wouldn’t be impacted because of the central bank step.