Paytm crisis: CAIT advises traders to switch from Paytm to other payment apps

“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. Large number of small traders, vendors, hawkers and women are making payments through Paytm and as such RBI restrictions on Paytm could lead 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, said CAIT secretary general Praveen Khandelwal.

He urged traders to act promptly and make informed decisions to mitigate any potential adverse effects on their financial operations.

ALSO READ: RBI’s Paytm crackdown: How Paytm Payments Bank came under central bank’s radar

“Money laundering concerns and questionable dealings of hundreds of crores of rupees between popular wallet Paytm and its lesser-known banking arm had led the RBI to clamp down on tech poster boy Vijay Shekhar Sharma-run entities,” reported PTI citing sources.

The RBI has ordered Paytm Payments Bank Ltd (PPBL) to suspend most of its business including taking deposits, conducting credit transactions and carrying out top-ups on any customer accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29.

Paytm wallet customers can use money till the time their balance is exhausted. They cannot add money after February 29.

And in case, RBI does not relent, top-up for Paytm wallet will stop and transactions through it cannot be conducted.

Paytm Payments Bank Limited is an associate of One97 Communications Limited (OCL). One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 per cent stake in the bank. 

(With inputs from agencies)

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Published: 04 Feb 2024, 04:52 PM IST