Paytm Payments Bank has issued an “important update” to its customers in response to the recent directive from the Reserve Bank of India (RBI). The RBI had imposed restrictions, preventing the bank from accepting new deposits or facilitating credit transactions beyond February 29. In an email and text message sent to customers, Paytm Payments Bank assured them that their existing balances remain unaffected by the RBI directive, emphasizing that their money is secure with the bank.
The communication from Paytm Payments Bank stated that customers would not be able to add or deposit money into their accounts or wallets after February 29. However, it clarified that there are no restrictions on withdrawing money from existing balances even after this date. The message also directed customers to seek further assistance through the 24×7 help section on the app.
According to the RBI’s earlier statement, Paytm Payments Bank is barred from accepting deposits, providing credit services, or facilitating fund transfers starting from March. The directive explicitly mentioned that no new deposits, credit transactions, or top-ups would be permitted in customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29, 2024.
In response to the RBI’s action, Paytm witnessed a significant decline in its market value, with the stock dropping to a six-week low of ₹609, marking a 20% decrease and wiping out approximately $1.2 billion in company value. Paytm acknowledged the potential financial impact of the RBI order, estimating a “worst case impact” of ₹300 crore to ₹500 crore on its annual earnings.
The company expressed its commitment to take immediate steps to comply with the RBI’s directions and emphasized its determination to continue improving profitability despite the regulatory challenges. Paytm Payments Bank’s reassurance to customers underscores its efforts to maintain transparency and address concerns arising from the regulatory intervention.
