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India ’s central camber has extended the deadline for some business restrictions on Paytm ’s Payments Bank to March 15 in “ larger public pursuit , ” daunt hopes of any major concessions but permit superfluous time to follow .
The Reserve Bank of India ( RBI ) suppose on Friday that Paytm Payments Bank will be block up from accept deposit and ease credit entry transactions from March 15 . The order initially hadset a deadline of February 29 .
The university extension follows curbs last calendar month that wipe 55 % from Paytm ’s market place detonator , which floated in 2021 at a $ 20 billion evaluation . The fintech attend to over 15 million merchants and 330 million wallet customer . Its cash reserves stood at over $ 1 billion at the remainder of December .
The RBI said in a statement that it was gallop the deadline in the “ interest of customers ( including merchant ) of PPBL who may require a little more prison term to make alternate arrangements and the heavy public interest . ”
Bernstein analysts wrote in a bill Friday evening that the young clarification mean that Paytm ’s Wallet ( which has over 330 million client ) and FASTag products will cease to exist . Paytm launch the FASTag market .
“ There was no explicit exception provided for a bulk conveyance of pocketbook / Fastag to another bank and hence these merchandise will cease to exist — this was a mostly expected negative , ” Bernstein analysts tot up . ( FASTag is India ’s bell solicitation job . )
Many other payments bank ’s service will be permitted until March 15 instead of the earlier February 29 deadline , the cardinal banksaid(PDF ) . The RBI alsopublished an FAQ(PDF ) , detail how the embargo on Paytm ’s Payments Bank will impact merchant and customers . The central bank pronounce merchandiser using Paytm ’s QR code , soundbox and point - of - sale terminal gadget will not be impacted by the disruption at Paytm , provided those machine and instruments are join to other coin bank accounts .
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“ This is a major positive though we would have liked to see more details such as : What merchants involve to do to continue using these payment solvent , if any ( for example a re - KYC ) ? What Paytm involve to do to enable these defrayment and if it ’s permitted to do so ? ( e.g. Switch over Nodal accounts , Partner with another depository financial institution as PSP etc . ) , ” analyst at Bernstein wrote Friday in a note .
Last month the RBI ordered Paytm to fill up nodal accounts by February 29 . It is uphold this deadline — payments firms use such accounts to enable transactions . Paytm said Friday it has transfer its nodal account to Axis Bank .
“ This arrangement is expected to seamlessly replace the nodal report that OCL was using with Paytm Payments Bank . Paytm Payment Services Ltd ( PPSL ) , OCL ’s wholly owned subsidiary has already been using the Axis Bank service , since its inception , ” Paytm say .
Earlier this hebdomad , Macquarieslashed its Paytm price quarry to 275 Indian rupee , or $ 4.11 , over regulative hazard , touch off fears client could exit . Shares close up Friday at 341 rupees .
The RBI has not give away Paytm ’s infraction , but say last hebdomad it only acts after “ persistent non - compliance . ” Governor Shaktikanta Das tell the bank wage bilaterally first to push disciplinal action . Any response is “ proportionate to the gravity . ”
Many hoped the RBI would soften its stance , but Friday ’s update suggest it be after to go on .
Story updated with Bernstein ’s remark .
