Paytm, known as One 97 Communications Limited in the public market, stated on March 13 that its app-based and merchant services will continue without interruption, emphasizing an expansion in financial services distribution through partnerships.
In a released statement, the company affirmed the seamless operation of its app-based services, such as Paytm, and merchant devices like Paytm QR, Soundbox, and card machines.
“We are broadening our financial services distribution platform through collaborations with leading institutions. Paytm remains dedicated to building an inclusive next-generation financial ecosystem for users nationwide,” the company assured.
As of 12:26 pm, Paytm stock was trading at Rs 350.95 on the NSE, marking a 4.99 percent decline.
The company clarified that recent regulatory actions specifically target Paytm Payments Bank Ltd (PPBL) and do not directly impact One 97 Communications Limited (OCL) or the broader Paytm ecosystem. Consequently, services provided by OCL/Paytm, including their app, QR codes, Soundbox, and card machines, continue to operate normally.
On January 31, the RBI imposed significant business restrictions on PPBL, including a ban on accepting fresh deposits and conducting credit transactions after February 29, due to major irregularities in KYC procedures.
The RBI extended the deadline for PPBL to halt fresh deposits and credit transactions to March 15 from the initially announced date of February 29.
However, the latest press release and FAQ from the RBI do not offer significant concessions or relaxations to the embattled payments bank.
“No further deposits or credit transactions will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc., after March 15, 2024, extending from the previous deadline of February 29, 2024, other than any interest, cashbacks, sweep-ins from partner banks, or refunds that may be credited at any time,” stated the RBI in its release.
On February 16, the RBI released an FAQ outlining the actions taken against PPBL, ensuring that customers of the bank would not be adversely affected by the central bank’s measures.
