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Paytm to terminate business with Paytm Payments Bank after central bank’s clampdown

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Paytm has announced that it will end its association with Paytm Payments Bank due to regulatory concerns imposed by the Reserve Bank of India (RBI). The central bank's restrictions on Paytm Payments Bank, including the prohibition of accepting fresh deposits and credit transactions, have prompted Paytm to seek partnerships with other banks for its financial services. Paytm has assured that its loan and insurance distribution operations will remain unaffected. However, the company's shares plummeted by 20% following the news. Paytm expects potential revenue loss of $36 million to $60 million in the worst-case scenario.

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