• UGI USER
  • Mar 07, 2024
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BAN ON PAYTM PAYMENT BANK: 85% OF WALLET USERS UNLIKELY TO BE IMPACTED, SAYS RBI GUV

Why in the news?

RBI Governor assures minimal disruption for most Paytm users; directive addresses compliance issues, not targeting fintech sector.

source:slideserve

About RBI Directive and Deadline Extension:

  • RBI barred PPBL from accepting deposits and top-ups in any customer account after February 29, 2024.
  • Deadline extended to March 15 due to persistent non-compliance issues.
What are Paytm Banks?

●   Introduced by RBI in 2014 to promote financial inclusion.

●   Offer basic banking services to unbanked and underbanked.

●   Example: Airtel Payments Bank, India Post Payments Bank.

●   Licensed under Section 22 (1) of Banking Regulation Act, 1949.

●   Fall under differentiated bank licence category, restricted services compared to commercial banks.

●   Maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).