News Post

What’s In Store For Paytm Beyond The March 15 Deadline?

Inc42

· 3m

Paytm Payments Bank is facing restrictions imposed by the Reserve Bank of India (RBI) that will come into effect on March 15. Customers will no longer be able to make deposits or transfer funds to their accounts, but they can still withdraw money or transfer funds to other accounts. Subsidies, direct benefit transfers, and auto payments linked to Aadhaar will also be unavailable after the deadline. Paytm wallet holders can withdraw and transfer funds but cannot top up their wallets or receive funds after March 15. Merchants accepting payments using Paytm QR codes or other devices will not be affected. The RBI's restrictions were a result of failure to address internal risk management issues and concerns over due diligence for onboarding politically exposed persons. Paytm has taken steps to comply, including board reconfigurations and discontinuing inter-company agreements with Paytm Payments Bank. Paytm has also been granted a Third Party App Provider license by the National Payments Corporation of India, allowing it to continue operating as a payment system provider through partnerships with other banks. The RBI's restrictions on Paytm Payments Bank have impacted Paytm's stock price, which has halved since the announcement of the restrictions. Paytm estimates that its annual EBITDA will take a hit of INR 300-500 crore ($40-68 million) as a result.