Paytm Payments Bank says there will be no impact on existing customers after RBI order

Paytm Payments Bank said in a tweet that it is taking all steps to comply with the orders of RBI. “Dear Customers, We value your relationship with you. We are taking all steps to comply with RBI directives. Our existing customers can continue to use all our banking services uninterruptedly.

“The bank is taking immediate steps to comply with the directions of RBI, including appointment of a reputed external auditor, to conduct a comprehensive system audit of its IT systems. PPBL is committed to working with the regulator to address their concerns at the earliest,” the bank said in a statement.

The company has been informed that this (RBI order) does not affect any existing customer of PPBL, who may continue to use all banking and payment services without interruption. All existing users of Paytm UPI, Paytm Wallet, Paytm FASTag and bank accounts can continue to use these tools for payments including debit cards and net banking.

The central bank, in its latest order issued on Friday, said its action against the bank is based on “certain material supervisory concerns”. Vijay Shekhar Sharma owns 51 percent of Paytm Payments Bank.

Paytm Payments Bank It has been directed to appoint an IT audit firm to conduct a comprehensive system audit of IT systems, the RBI order said. “Addition of new customers by Paytm Payments Bank Ltd. will be subject to specific permission granted by RBI after review of a report by the IT auditors,” the central bank said.

What new users can still do:

New users can sign up on the Paytm app, and transact on the Paytm app by creating a UPI handle and linking them to their bank accounts or using third party payment instruments.

Users may not, until further notice, sign up for a new PPBL Wallet or PPBL Savings or Current Accounts. Paytm believes that the measures imposed on PPBL will not have any impact on Paytm’s overall business, the bank said.

“This direction has no bearing on the services that Paytm provides in partnership with other financial services institutions. We are focused on expanding digital payments and financial services to promote financial inclusion in India.”

Paytm Payments Bank:

Established in August 2016, Paytm Payments Bank commenced operations in May 2017. It opened its first branch in Noida. Paytm Payments Bank received RBI nod to operate as a “scheduled payments bank” in December 2021, helping it expand its financial services operations.