order to ensure compliance with the Reserve Bank’s direction, which included the suspension of opening new accounts. “We are taking immediate steps to comply with RBI directions. PPBL remains committed to working with the regulator to address their concerns as quickly as possible. We shall notify when we recommence the opening of new accounts after obtaining RBI approval,” the payments bank said in a blog.
Paytm Payments was incorporated in 2016 and commenced operations the following year. Indian billionaire businessman Vijay Shekhar Sharma holds 51 per cent stake in the company, while tech firm Paytm holds the remaining 49 per cent. Recent figures show that PPBL had around 64 million customers before it was subjected to regulatory action by the RBI.
As part of the central bank’s direction, PPBL has also been directed to appoint an IT audit firm to have the firm’s IT systems audited. Meanwhile, existing customers of the bank may continue to enjoy banking and digital payments services without interruption, the firm said in the blog.
“The savings of existing users in their PPBL account, their fixed deposits with partnered banks and the balance maintained in their Paytm Wallet, FASTag or Wallet Card and UPI services are completely safe and functional,” the statement read. “Any new users coming to the Paytm app can create Paytm UPI handles, and link them to their existing PPBL account or to other bank accounts. However, new users cannot, until further notice, sign up for new PPBL wallets or PPBL savings or current accounts.”
