After the action of RBI on Paytm Payments Bank (PPBL), the problems of One97 Communications or Paytm, one of the famous fintech companies of the country, are continuously increasing. On one hand, the company’s shares witnessed a huge decline in the last few trading sessions. On the other hand, RBI is considering canceling the license of Paytm Payments Bank or abolishing its board. Meanwhile, grocery shopkeepers across the country are in one voice telling customers not to use Paytm! About 42 percent of grocery stores in India have distanced themselves from Paytm and started using other mobile payment apps.
42 percent grocery shops distanced themselves from Paytm
Following RBI restrictions against Paytm Payments Bank last week, 42 percent of Kirana stores in India have moved away from Paytm and started using other mobile payment apps, according to a Kirana Club survey released on Thursday. In this survey, 5,000 grocery shopkeepers were talked to.
Trust in Paytm decreased by 68 percent
According to Kirana Club’s survey, about 20 percent said they intend to use other payment apps. The survey said that after the action of RBI, 68 percent of Indian grocery stores have lost trust in Paytm.
The survey revealed another clear finding regarding trust among local retailers regarding Paytm. It states that after RBI restrictions, trust in Paytm has decreased in 68 percent of Indian grocery stores.
Anshul Gupta, founder and CEO of Kirana Club, said, “Kirana stores may face some problems due to the restrictions imposed by RBI, but they are not too worried as there are many other payment options available.
These payment apps are getting benefits
The survey shows that among the retailers who are using or thinking of using other apps for payments, 50 percent of the sellers have switched to PhonePe. While 30 percent have adopted Google Pay and 10 percent have adopted BharatPe.
Let us inform you that on January 31, the Reserve Bank had banned Paytm Payments Bank (PPBL) from accepting new deposits in its accounts and digital wallets from March 1. Then RBI had said in its notice that the action against PPBL was taken in view of the concern of money laundering due to widespread violation of Know Your Customer (KYC) rules.
RBI Governor Shaktikanta Das told why action was taken on PPBL
“The action taken against Paytm Payments Bank was not due to regulatory issues but due to compliance issues,” RBI Governor Shaktikanta Das said in the press conference after the Monetary Policy Meeting (MPC Meet) on Thursday.
Das said that there is no need to worry about the system regarding Paytm issue, we are only talking about the payments bank. Das further said that if everything had been complied with, then why would the central bank take action against a regulated entity.
Apart from this, RBI Deputy Governor Swaminathan J. It said action was taken against Paytm for “persistent non-compliance”. Adequate time was also given for corrective action. He said that this decision was taken after several bilateral meetings between Paytm and RBI. He said that this decision will not affect Paytm app.
