Confederation of All India Merchants (CAIT) on Sunday advised merchants to switch from Paytm to other payment apps for business transactions following the Reserve Bank of India’s (RBI) restrictions on Paytm wallet and banking operations.
“The Reserve Bank of India has imposed certain restrictions, prompting CAIT to recommend that users take proactive measures to protect their funds and ensure uninterrupted financial transactions. A large number of small traders, vendors, hawkers and women make payments through Paytm and hence RBI restrictions on Paytm could cause financial disruption to these people,” the CAIT said.
The recent restrictions imposed by RBI on Paytm have raised concerns about the security and continuity of financial services provided by the platform, CAIT Secretary General Praveen Khandelwal said.
He urged traders to act quickly and make informed decisions to mitigate any possible adverse effects on their financial operations.
ALSO READ: RBI’s Paytm cleanup: How Paytm Payments Bank came under central bank’s radar
“The concerns over money laundering and questionable dealings of hundreds of crores of rupees between popular wallet Paytm and its lesser-known banking arm led the RBI to block Vijay Shekhar Sharma’s tech posts,” PTI reported citing sources.
The RBI has ordered Paytm Payments Bank Ltd (PPBL) to suspend most of its business including taking deposits, making credit transactions and making top-ups on certain customer accounts, prepaid instruments, wallets and toll payment cards after the 29- a of February
Paytm wallet customers can use money till their balance is exhausted. They cannot add money after February 29th.
And in the event that RBI does not relent, addition for Paytm wallet will stop and transactions through it cannot be done.
Paytm Payments Bank Limited is a partner of One97 Communications Limited (OCL). One97 Communications holds 49 percent of the paid-up share capital (directly and through its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 percent stake in the bank.
(With inputs from agencies)
Here’s your comprehensive 3-minute summary of everything Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!
Catch all Corporate news and Updates on Live Mint. Check out all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates and Live Business News.
More or less
Published: 04 Feb 2024, 16:52 IST