Discover how the RBI’s advice to Paytm Payment Bank impacts users and the fintech sector. Insights on economic growth projections included. Stay informed!
The Reserve Bank of India (RBI) has suggested that Paytm Payment Bank (PPBL) move its remaining Paytm wallet users, whose accounts are only linked to the payment bank, to other banks.
Majority of Paytm Users Unaffected
RBI Governor Shaktikanta Das mentioned that around 85% of Paytm wallet users won’t be impacted by the restrictions on Paytm Payments Bank because their app is connected to other bank accounts as well.
Deadline for PPBL Restrictions Extended
The RBI had initially instructed PPBL to stop accepting deposits or top-ups in any customer account, among other services, starting February 29, 2024, due to regulatory issues. This deadline was later extended to March 15.
Shift Encouraged for Remaining Users
The remaining 15-20% of Paytm wallet users solely linked to PPBL accounts are advised by RBI to switch to other banks. Other banks are actively accepting these customers.
Cooperation with NPCI
The National Payments Corporation of India (NPCI) is collaborating with banks to ensure a smooth transition for affected customers.
March 15 Deadline for Action
Governor Das urged Paytm wallet users linked solely to PPBL accounts to switch to another bank before March 15. The RBI believes the given time until March 15 is adequate for this transition.
Clarification on Fintech Sector
Governor Das clarified that the RBI’s actions against PPBL should not be misconstrued as targeting the fintech sector. Fintech companies fall under RBI regulations only if they are non-banking financial company (NBFC) lenders.
Positive Economic Growth Forecast
Governor Das expressed optimism regarding the economic growth, suggesting that the growth rate for FY2024 might exceed 7.6%. He also projected a 7% GDP growth for FY2025.
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