New Delhi: The Reserve Bank of India (RBI) has revoked the operating license of Paytm Payments Bank Limited (PPBL) effective immediately, raising questions among customers about the Paytm application’s performance and related offerings. Below is an explanation of the implications for Paytm UPI users.
One 97 Communications, Paytm’s parent firm, issued a clarification separating itself from its affiliate, Paytm Payments Bank Limited.
The license revocation pertains to ‘an independent organization,’ the firm emphasized, noting that it experiences no direct financial consequences. As previously reported, the company had already written down its investment in PPBL by March 31, 2024.
One 97 Communications stated that it holds no financial stake in PPBL and maintains no significant operational ties with it. It added that PPBL functions autonomously, without any oversight or leadership input from One 97 Communications.
The company affirmed that all Paytm services remain active, stating, ‘Paytm and its offerings have continued without disruption and will persist in doing so. This encompasses the Paytm application, Paytm UPI, Paytm Gold, and additional services from its affiliates, including Paytm QR codes, Paytm Soundbox devices, Paytm card terminals, Paytm Payment Gateway, and Paytm Money, among others.’
On Friday, the RBI terminated the banking license of Paytm Payments Bank Limited pursuant to Section 22(4) of the Banking Regulation Act, 1949, due to non-adherence to license stipulations.
