Post RBI order, Paytm Payments Bank says no impact on existing customers

In a tweet, Paytm Payments Bank said it’s taking all the steps to comply with the RBI orders. “Dear customers, we value your relationship with us. We are taking all steps to comply with the RBI directions. Our existing customers can continue to seamlessly use all our banking services.

“The bank is taking immediate steps to comply with RBI directions, including the appointment of a reputed external auditor to conduct a comprehensive System Audit of its IT systems. PPBL remains committed to working with the regulator to address their concerns as quickly as possible,” the bank said in a statement.

The company has been informed that this (the RBI order) does not impact any existing customers of PPBL, who can 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 instruments, including debit cards and net banking, for payments,” the bank said.

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

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

What new users can still do:

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

Users can not, until further notice, sign up for new PPBL wallets or PPBL savings or current accounts. Paytm believes the measures imposed upon PPBL will not materially impact Paytm’s overall business, the bank said.

“This direction does not have an impact on the services that Paytm provides in partnership with other financial services institutions. We remain focused on expanding digital payments and financial services to promote financial inclusion in India,” the bank added.

Paytm Payments Bank:

Incorporated in August 2016, Paytm Payments Bank had started operations in May 2017. It opened its first branch in Noida. Paytm Payments Bank received the RBI nod to operate as a “scheduled payments bank” in December 2021, which helped it expand its financial services operations.