The Paytm Payments Bank assured its customers that their “money is safe” with the company, two days after the Reserve Bank of India (RBI) restricted it from accepting new deposits or allowing credit transactions after February 29. In an email and text message to its customers, Paytm Payments Bank said that the RBI directive does not impact their existing balances.
Paytm Payments Bank said in its “important update”, “Your money is safe with the Bank” as it told customers that they will not be able to add/deposit money to their accounts/wallets after February 29.
“However, there is no restriction on withdrawal of money from your existing balance even after Feb 29, 2024,” it said, continuing, “For any further assistance, please reach out to us via 24×7 help section on the App.”
The RBI earlier said that the Paytm Payments Bank cannot take deposits, offer credit services or facilitate fund transfers from March.
“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” the central bank said.
The RBI said it had in March 2022 asked the Paytm Payments Bank to stop adding new customers.
Following this, Paytm lost a fifth of its market value after RBI’s action against Paytm Payments Bank. Paytm’s stock fell to a six-week low of ₹609, erasing around $1.2 billion in value from the company as it went down 20% today.
The company said that it expects a “worst case impact” of ₹300 crore to ₹500 crore to its annual earnings from RBI’s order.
We are taking “immediate steps” to comply with the RBI’s directions and expect to “continue on its trajectory” to improve its profitability, it said.