The Nationwide Funds Company of India (NPCI) is reportedly anticipated to grant Paytm a third-party utility supplier license by March 15. Moreover, the Reserve Financial institution of India is unlikely to increase the March 15 deadline set for Paytm Funds Financial institution, Paytm’s banking unit, to stop operations, in line with a Reuters report quoting sources on Tuesday.
This license will allow prospects to proceed utilising the Paytm app for funds by way of India’s broadly used Unified Funds Interface (UPI) even after the banking arm concludes its operations.
On February 16, 2024, the Reserve Financial institution of India (RBI) prolonged the deadline for Paytm Cost Financial institution prospects to conduct deposits and credit score transactions till March 15. This choice was prompted by issues surrounding the financial institution’s ongoing disaster, elevating alarms amongst prospects and regulatory authorities.
“No additional deposits or credit score transactions or top-ups shall be allowed in any buyer accounts, pay as you go devices, wallets, FASTags, Nationwide Frequent Mobility Playing cards, and many others. after March 15, 2024 (prolonged from the sooner stipulated timeline of February 29, 2024), apart from any curiosity, cashback, sweep-in from accomplice banks or refunds which can be credited anytime,” mentioned RBI in a notification earlier.
The RBI issued a directive to Paytm Funds Financial institution on January 31, directing it to stop accepting deposits or top-ups in any buyer accounts, wallets, FASTags, and different devices ranging from February 29, 2024 onwards. This motion was taken as a consequence of persistent non-compliance and ongoing materials supervisory issues recognized in Paytm Funds Financial institution Ltd, as indicated by a complete system audit report and subsequent compliance validation report by exterior auditors.
Because of this, the RBI imposed a number of restrictions on the financial institution. Moreover, on February 16, 2024, the RBI launched a set of FAQs addressing issues associated to the Paytm disaster.
Notably, in February, Paytm’s founder Vijay Shekhar Sharma stepped down from his place as a part-time non-executive chairman and board member at affiliate entity Paytm Funds Financial institution Ltd.
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