SleepyMarshmallow

Zomato

Paytm gets a shock from RBI

PAYTM Payments Bank essentially asked to shut shop.

Afaik here are the few implications

Stock market will react in a bad way to them
Worst affected are going to be FasTag users who bought from PayTM.
No deposits / credits allowed in any account. Withdrawal is allowed.
UPI not allowed after Feb

14mo ago

Talking product sense with Ridhi

9 min AI interview5 questions

GigglyNoodle

Accenture14mo

That stock is about to crash so fucking hard. Thank god i got out. The crappiest IPO of this decade.

SqueakyDumpling

Stealth14mo

I just placed a sell order :(

TwirlyDonut

Stealth14mo

Do you think it would execute during opening of the market

SquishyQuokka

Gojek14mo

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.

FuzzyNarwhal

Razorpay14mo

What was Razorpay debacle?

SquishyQuokka

Gojek14mo

Razorpay could not onboard merchants for upwards of one year.

MagicalSushi

InMobi14mo

Very bad. This was my everyday bank account for small transactions. Easy to remember account number also

PerkyPotato

Stealth14mo

And not once in 3-4 years did I have a failed transaction. Their servers are always functional and fast

DancingDonut

Accenture14mo

1 in 3 fasttags in India are from PayTm that would be really bad

TwirlyWaffle

Microsoft14mo

Bank and wallets are different products

ZippyDonut

Juspay14mo

And both are stopped

WigglyBanana

Stealth14mo

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

DancingCoconut

Stealth14mo

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.

DancingJellybean

Western Digital14mo

What the fuck?

SleepyJellybean

Razorpay14mo

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

FluffyPenguin

Kotak Mahindra Group14mo

What is the Kotak story?

SleepyJellybean

Razorpay14mo

https://m.economictimes.com/industry/banking/finance/banking/uday-kotak-a-journey-to-meteoric-heights-cut-short-by-regulator/amp_articleshow/103313669.cms

CosmicSushi

Bosch14mo

Proud of our RBI.

TwirlyPickle

Cisco14mo

Just why? 1000s of people are going to lose jobs due to RBI's stupid move.

TwirlyWaffle

Microsoft14mo

Well better safe than sorry its better than millions losing billions .. compliance in finance should be strict

TwirlyDonut

Stealth14mo

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.

SwirlyTaco

Veritas14mo

UPI is allowed, only trnxs from Paytm Bank are not allowed.. However, you can do UPI trnxs on paytm using other bank accounts

ZippyDonut

Juspay14mo

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

SwirlyTaco

Veritas14mo

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.

BouncyTaco

MoMoney14mo

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

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