Paytm shares mail with its users
Following years of losses, RBI ordered Paytm’s banking unit to stop accepting new deposits, which led to downfall of shares of the fintech giant on Thursday. The day after the Reserve Bank of India (RBI) revealed “persistent non-compliances” at Paytm Payments Bank, the business fell 20% at the opening of trading in Mumbai before trading was suspended. Looking into the matter, Paytm shared mail with its consumers.
This mail was received by Paytm customers
Looking at the sharp fall of the shares, the company decided to send a one on one message to its users. Hence, they shared an e-mail that cleared out the fact that even though the banking arm of Paytm is going down, the consumers will be able to withdraw their money out from their accounts safely. The email read, “Please note that you will not be able to deposit or add money to your Paytm Payments Bank Account/Wallet after Feb 29, 2024. However, there is no restriction on withdrawal of money from your existing balance even after Feb 29, 2024.”
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Orders from RBI
The RBI stated that while consumers would be able to withdraw money they have already put, it will not be allowed to take in new deposits, provide fund transfers, or assist with credit transactions starting in March. TransfePaytm said in a statement on Thursday that it was taking “immediate steps” to comply with the RBI’s regulations. The RBI stated that it would not be able to take new deposits and offer funds.
It said that it “expects to continue on its trajectory to improve its profitability” despite the order’s predicted “worst case impact” on earnings of between 3-5 billion rupees ($36–60 million) per year. The RBI had urged the bank to cease accepting new clients by 2022, so this judgment represents the second significant regulatory action against the business.rs or assist in credit transactions starting in March, even though clients will still be allowed to take out money they have previously placed.
