The Confederation of All India Traders (CAIT), has issued a warning advisory to all businesses and merchants in the country to switch to other payment platforms from paytm after the RBI imposed a ban on Paytm Payments Bank.
The trade body asked the small brick and mortar businesses to make informed decisions and act proactively to switch to regulatory compliant payment programs.
CAIT national president BC Bhartia and general secretary Praveen Khandelwal issued a statement for the merchants to mitigate financial challenges that may arise due to RBI’s actions against Paytm.
“The RBI has imposed certain restrictions, prompting CAIT to recommend that users take proactive measures to protect their funds and ensure uninterrupted financial transactions,” CAIT said in a statement released on February 4, 2024, as reported by MoneyControl.
Emphasizing on the different types of businesses using Paytm for payment transactions, it said “a large number of small traders, vendors, hawkers and women make payments through Paytm and as such RBI restrictions on Paytm could lead to financial disruptions for these people.”
CAIT represents small merchants and businesses that deal with customers through small local shops.
“Our advice is a precautionary measure to protect the financial interests of traders in light of recent developments. We encourage users to stay informed and take proactive steps to ensure the safety of their funds,” the two CAIT officials said in the statement, as reported. from the NDTV.
Following the Reserve Bank of India’s notice to Paytm to suspend the operations of its banking services, Paytm’s stock fell more than 36 percent over two days and wiped $2 billion off its market value.
Vijay Shekhar Sharma, the founder of One 97 Communications, the parent company of Paytm, in a post on X (formerly Twitter) announced on February 3 that the services of the fintech company will be operational even after February 29 , the deadline set by the RBI to cease its operations.
(Reporting by Ritesh)
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