Understanding the RBI Ban on Paytm Payments Bank: Impact on Paytm’s Future
Paytm is in serious trouble after the Reserve Bank of India (RBI) cracked down on them. A recent RBI circular stated that Paytm Payments Bank could not take new deposits or conduct credit transactions from February 29.
What does this signify for the users? Starting on that day, you will be unable to add funds to your wallet, prepaid instruments, FASTags, or National Common Mobility Cards.
In essence, all account holders must clear their balances and cancel their accounts. Following the announcement, Paytm's share price plunged nearly 20% on Thursday.
This change would affect a large number of people, including 300 million wallets, 30 million bank accounts, 1.6 billion UPI transactions every month, and eight million Fastags linked to Paytm Bank.
So, why is this happening?
A...