Paytm has reacted to the immediate ban on the services of Paytm Payments Bank by the Reserve Bank. Paytm has said in its reply to the exchanges that Paytm Payments Bank will follow all the instructions of RBI with immediate effect.
To ensure that the existing customers of Paytm do not face any problem, the company will tie up with third party banks for distribution of payments and financial services. Paytm has also made it clear that the payment gateway will continue to provide payment solutions to existing merchants. RBI orders will not affect this business. Not only this, offline services like Paytm QR, Paytm Soundbox, Paytm Card Machine will also continue as before.
Paytm has also assessed the loss caused by RBI’s decision. According to him, due to RBI’s decision there will be a maximum loss of Rs 300 to 500 crore on annual EBITDA.
What restrictions have RBI imposed?
Let us tell you that RBI had banned Paytm Payments Bank from adding new customers in March 2022 itself. This restriction still continues. According to the RBI statement on Wednesday, Paytm Payments Bank will not be able to take any deposits on any customer’s account after February 29. However, existing customers of Paytm Bank will be allowed to withdraw their balance.
