In a message aimed at reassuring Paytm users, founder and CEO Vijay Shekhar Sharma addressed concerns surrounding the recent developments involving Paytm Payments Bank.
Expressing gratitude for unwavering support, Sharma assured users that the app would seamlessly operate beyond February 29. In a post on X (formerly Twitter), he stated, “To every Paytmer, Your favorite app is working, will keep working beyond 29 February as usual.”
Amidst a regulatory crisis following the Reserve Bank of India (RBI) imposing restrictions on Paytm Payments Bank, Vijay Shekhar Sharma conveyed to fellow founders that the ‘Indian startup dream must overcome every situation collectively.’
“Thank you, everyone, for your relentless support. Obviously, a conversation at a wider level should help. We should not let anything deter us from what we all have built over so many years,” he stated. “The Indian Startup Dream must overcome every situation collectively. Here, for good,” he added.
Earlier, on January 31, the RBI imposed significant business restrictions on Paytm Payments Bank. Yogesh Dayal, Chief General Manager at RBI, clarified that after February 29, 2024, no additional deposits, credit transactions, or top-ups would be permitted in various customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. Exceptions to this restriction include allowances for interest, cashbacks, or refunds to be credited at any time.
While customers retain the ability to withdraw or utilise balances from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., the limitations imposed on Paytm Payments Bank stem from a Comprehensive System Audit report and compliance validation report highlighting persistent non-compliances and supervisory concerns.
The RBI’s decision to impose restrictions on Paytm Payments Bank traces back to its initial instruction in March 2022, directing the bank to cease adding new customers. This recent action is taken under Section 35A of the Banking Regulation Act, 1949.
