RBI Restricts Paytm Payments Bank From Taking New Deposits, Credit score Transactions

The Reserve Bank of India on Wednesday restricted Paytm Payments Bank Ltd from taking contemporary deposits and credit score transactions throughout its providers, resulting from non-compliance of rules and supervisory issues.

An audit report revealed “persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” the central financial institution stated in a launch.

Paytm Payments Bank is not going to be allowed to take additional deposits in any buyer accounts after February 29, the RBI stated.

It added that no credit score transactions will likely be allowed both, together with through wallets.

The withdrawal or utilisation of balances by its prospects will likely be permitted with out restrictions, the central financial institution stated.

Last month, One 97 Communications, mother or father of Paytm, confirmed a “slight reduction” in its workforce on Monday as a part of cost-cutting measures with out specifying the variety of jobs.

An organization spokesperson, nevertheless, denied media studies at the moment that recommended the non-bank lender might reduce greater than 1,000 roles.

“We will be able to save 10-15 percent in employee costs as Artificial Intelligence (AI) has delivered more than we expected it to,” the spokesperson had informed Reuters.

During its fiscal yr to end-March 2023, Paytm had a mean of 32,798 straight employed employees and 1,589 contracted staff worldwide throughout its numerous items, its annual report confirmed.

In August 2023, Paytm Chairman Vijay Shekhar Sharma stated he would purchase a ten.3 p.c stake value $628 million (roughly Rs. 5,195 crore) within the agency he based from an arm of Chinese fintech big Ant Financial in a deal that will make him its single largest shareholder.

© Thomson Reuters 2024