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Paytm has announced that the recent action taken by the Reserve Bank of India (RBI) against its associate entity, Paytm Payments Bank Ltd (PPBL), will not have any material financial or business repercussions for the company. The digital payments firm emphasized that it maintains no significant exposure or operational ties with the banking entity.
This clarification comes after the RBI imposed restrictions on PPBL, prohibiting it from accepting new deposits and undertaking credit transactions or balance inquiries in its customer accounts after February 29, 2024. The central bank cited persistent non-compliance with regulatory norms and supervisory issues as reasons for its directive.
Paytm reiterated that its core business operations, including payment services, continue to function without interruption. The company aims to reassure stakeholders and the market that its services remain fully operational, despite the regulatory action against its banking arm.
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