PayTM in Big Trouble
It seems PayTM Bank has received a notice from the Reserve Bank of India to just stop all their activities pack their bags and leave town. It was a surprise when the Apex Bank asked a huge player in the Banking Sector like PayTM to just stop all transactions and deposits into their platform but you have to look into other factors that played a role in this. PayTm has over 18 Million downloads and a userbase that ranges in the Millions so it is going to be a hassle for users to migrate and take out all their money in a ziffy. I don't have any account linked with PayTM but my wife uses PayTM regularly and she was shocked by this development.
Why are the Restrictions placed on PayTM?
It seems the Reserve Bank of India asked PayTM to stop enlisting more users to their platform back in March 2022 but a recent Audit showed that PayTM didn't comply with the Apex Bank at all and now that things have come up to this the RBI has invoked Section 35A of the Banking Regulation Act, 1949. This means there will be no deposits, no top-ups, and any form of transactions on their platform.
I am not sure as to why the RBI asked PayTM Bank to stop enlisting more customers but there should have been a pretty good reason for that.
The Response of PayTM
In response to this PayTM has officially come out and said that it will be fully complying with the Reserve Bank of India's orders as soon as possible. But I just can't see PayTM just coming out of this Fiasco unscathed as there is blood in the water and it is only a matter of how much Blood should be drawn from PayTM.
So just to be safe just withdraw or transfer your Money from PayTM Bank by 29th February 2024 and then wait and see what happens next.
Posted Using InLeo Alpha
Based on this I think payTM should have it at the back of their minds that it’s going to be a rough ride and hope for the best. Nevertheless they should comply with the rules of the reserve bank of India
I just don't feel like even if they comply to all the rules now the damage has already been done and recovering would really be tough if not impossible.
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