The topic of the Paytm ban has been breaking the internet ever since the Reserve Bank of India (RBI) barred its Payments Bank services on Thursday. India's Central Bank RBI barred Paytm Payments Bank Ltd (PPBL) from further deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29, 2024, other than any interest, cashback, or refunds which may be credited anytime. As a result, entire India went into shock as Paytm is among the most used apps when it comes to online payment services. Notably, Paytm was first formed as a prepaid mobile and DTH recharge platform. However, it went on to become a market leader in the country's QR and mobile payments networks. Paytm was among the first apps that gave UPI services when Prime Minister Narendra Modi announced demonization. Now, the question arises as to why Paytm Ban has come into effect or why RBI has barred Paytm from offering core services like wallets and fund transfers. Paytm ban is explained in three points below-
Why did RBI ban Paytm's payment bank services?
The Reserve Bank of India has maintained its secrecy over its decision, however, it has indeed issued a statement. RBI in its statement said that it was based on a comprehensive system audit report and subsequent compliance validation report by external auditors.
