The recent Reserve Bank of India (RBI) directive restricting Paytm Payments Bank (PPBL) is projected to have minimal impact on payments, reveals a Business Standard report. Despite the RBI’s move to halt deposits and credit transactions after February 29, data from banking industry sources indicate that 90% of Paytm’s UPI users have linked accounts with other banks.
Out of approximately 90 million Paytm UPI app users, 75 million have multiple UPI app installations, while only 15 million are unique to the Paytm UPI app. The majority of users have already diversified their backend accounts beyond Paytm, mitigating the potential impact of the central bank’s restrictions.
RBI Governor Shaktikanta Das has underlined the limited scope for reconsideration, stating that regulatory actions are taken after thorough evaluations. The RBI’s directive, initiated on January 31, prohibits PPBL from accepting deposits or top-ups after February 29.
Meanwhile, the government is closely examining Chinese investments in Paytm Payments Services Ltd (PPSL), the payment aggregator subsidiary of Paytm. The scrutiny focuses on PPSL’s application for an RBI license to operate as a payment aggregator, reflecting growing concerns about foreign direct investments from China in the fintech sector.
