Paytm Payments Bank Crisis: Due to the crackdown on Paytm Payments Bank, their mobile wallet business has been hit hard. Paytm Payments Bank cannot add new customers as per RBI order. In the last three months, there has been a sharp decline in digital transactions on this platform.
Paytm Payments Bank Crisis
Due to the crackdown on Paytm Payments Bank, their mobile wallet business has been hit hard. Paytm Payments Bank cannot add new customers as per RBI order. In the last three months, there has been a sharp decline in digital transactions on this platform. In fact, customers are slowly moving out of Paytm Payments Bank’s wallet ecosystem.
Paytm Payments Bank’s wallet was 60.7 crore in September 2023, which declined to 59.7 crore in March 2024. Amazon Pay’s wallets have grown from 6.4 crore to 6.6 crore, Mobikwik’s from 13.1 crore to 13.5 crore, PhonePe’s from 15.2 crore to 19.4 crore and Slice’s from 1.3 lakh to over 20 lakh.
As per RBI mandate, Paytm Payments Bank accounts (both savings and prepaid accounts) can only be used for pay-out transactions but users cannot add money to it. Transactions worth Rs 4,163 crore were made through the Paytm Payments Bank wallet in March, down 70% from Rs 13,997 crore in December 2023. RBI had taken action against Paytm Payments Bank on January 31.
• The deadline for shutting down basic banking services was initially given till the end of February, but the deadline was later extended to March 15.
The regulatory actions against Paytm Payments Bank have impacted its mobile wallet business operation, thus bringing it to a standstill.
A thread🧵: (1/4)
— Inc42 (@Inc42) April 30, 2024
Paytm Payments Bank Limited (PPBL) had lakhs of accounts without KYC. There have been several cases where one PAN card was used to open multiple accounts. Transactions worth crores of rupees were done through these accounts. There is also a possibility of money laundering.
According to the report, Paytm Payments Bank had about 35 crore e-wallets. About 31 crore of them were inactive. There are millions of accounts that have not been KYCed. PPBL is accused of providing wrong and incomplete information to RBI. Suspicious transactions have been detected from these accounts. RBI took action on this basis.
Also read this:
• Big mess in ICICI Bank’s iMobile Pay app; Credit card information of customers exposed
• Mercenary Spyware: iPhone Users Beware! Apple has sent notification to 91 countries user
