UPI Payments firm Paytm Chief Executive Vijay Sharma took to X, formerly known as Twitter, guaranteeing its users that the app will continue to work as usual beyond February 29, on Friday.
Earlier this week, the Reserve Bank of India, under section 35A of the Banking Regulation Act, 1949, released an official notice stating Paytm Payments Bank, founded by Sharma in 2017, to stop onboarding new customers, effective immediately.
The ban imposed by the RBI will affect customers who are linked to prepaid instruments, wallets, National Common Mobility Card (NCMC) cards after February 29, other than any interest, cashback, or refunds which may be credited anytime.
“Your favourite app is working, will keep working beyond February 29 as usual,” said Sharma.
“India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it”, he added.
RBI has said the Nodal Accounts of One97 Communications Ltd, also owned by Vijay Sharma and Paytm Payments Services are to be terminated at the earliest by February 29.
The comprehensive System Audit report and subsequent compliance validation report of the external auditors said persistent non-compliance issues and continued material supervisory concerns in the bank, warrant further supervisory action.
In March 2022, RBI issued a notice with concern about stopping the onboarding of new customers, while it also directed to appointment of an IT audit firm to conduct a comprehensive System Audit of its IT system.
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