Paytm gets a shock from RBI
PAYTM Payments Bank essentially asked to shut shop. Afaik here are the few implications 1. Stock market will react in a bad way to them 2. Worst affected are going to be FasTag users who bought from PayTM. 3. No deposits / credits allowed in any account. Withdrawal is allowed. 4. UPI not allowed after Feb
That stock is about to crash so fucking hard. Thank god i got out. The crappiest IPO of this decade.
Hermit
Stealth
8 months ago
Do you think it would execute during opening of the market
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This is eerily reminiscent of Razorpay debacle. Something similar has even happened to AmEx at some point in India.
Appears as though RBI has sensed something that has alerted them to it.
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Very bad. This was my everyday bank account for small transactions. Easy to remember account number also
And not once in 3-4 years did I have a failed transaction. Their servers are always functional and fast
Wait what?
So what will PayTM be effectively doing if UPI/deposits/credits aren’t allowed?
Isn’t this everything they do or am I over reading
AngryComma
Stealth
8 months ago
No, I think it means UPI payments are banned only for the bank. If you have a Paytm Payment account and you're trying to do a UPI payment from that account, that won't be allowed from now on.
ThirdVeldt18
Student
8 months ago
What the fuck?
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Rules are simple but most seem to not comply . You should not behave as a bank by not having banking license
If you do that you will be In soup . Razorpay’s case was different . RBI is too strict on most aspect . Just check what they did to Kotak and also think why Ambani and Tata don’t have banking license
https://m.economictimes.com/industry/banking/finance/banking/uday-kotak-a-journey-to-meteoric-heights-cut-short-by-regulator/amp_articleshow/103313669.cms
Hermit
Stealth
8 months ago
That just takes away their entire business model. Wallet and UPI was their end game. I doubt if their store or ONDC is making enough revenue.
I foresee PayTm too cutting jobs and retail investors facing a bloodbath starting tomorrow.
Tomorrow is gonna be a hectic day at the market. Paytm and Budget will have adverse implications and for God's sake of again any other major bank crashes, Investors are gonna get rekt
UPI is allowed, only trnxs from Paytm Bank are not allowed.. However, you can do UPI trnxs on paytm using other bank accounts
But to process and acquire upi transactions they use PPBL. So in effect upi is also banned till they figure out a new partner bank
They use Paytm banks infra, they don't make accounts of paytm users on Paytm Bank, so don't think it will be an issue. For example, to process UPI Gpay uses icici or axis banks infra to process but they don't do any deposit or such type of trnxs.
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Stock is certainly going to crash, there have been multiple lapses previously, but it's too much for RBI to even let them operate now. I haven't been a fan of their services either. Customer support has been non existent, since they replaced them with AI bots. Im glad I don't have a relationship with Paytm, specially Paytm Payments Bank. Feeling sad for people who showed conviction over the years even after all the lapses.
According to audit reports, this action was taken due to "persistent non-compliance" and "continued material supervisory concerns"
Can anyone from paytm reveal more?
marwari
Stealth
8 months ago
What will PayTM do even? — it’s whole business shut down thing. My shares gonna cry tomorrow — they are bleeding from the day 1. So do I.
PixerX
Student
8 months ago
I have a small FD through PPB, should I withdraw it right now?
As per notification there will be no restriction on withdrawal from PPB, but to be on the safer side you should withdraw before 29th Feb.
PixerX
Student
8 months ago
Thanks, is there any good alternative to PPB?, I use Airtel payment bank, but mostly like to keep two online options
Satoshi_DKBOSE
Stealth
8 months ago
No biggie. The same happened to a lot of providers in India. Will be lifted very soon :)
“No other banking services like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024," the statement added.
The RBI further mentioned that the Nodal Accounts of One97 Communications and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024.
However, the withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards are to be permitted without any restrictions, up to their available balance, the banking regulator said in a statement.
But once the wallet balance or Fastag balance goes to 0 , we cannot add any money, correct so that entire customer just goes somewhere else, correct ?
Its not a shock, RBI has issued guidelines and issues advisory if you are not following them then this happens.
IronDev
Student
8 months ago
Fk it men, my whole savings was in its FD and now I can't even cashout it
Its saying current redemption allowed is rs 0
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