Paytm app, UPI, QR to operate uninterrupted despite RBI action on bank
Synopsis
Paytm's parent company assures that its key services like the app, UPI, and QR codes will continue to operate uninterrupted. The RBI's action of cancelling the banking licence is strictly against its associate entity, Paytm Payments Bank Limited.
One 97 Communications Limited on Thursday said its key services, including the Paytm app, Paytm UPI, Paytm QR, Soundbox, card machines and Payment Gateway, will continue to operate uninterrupted despite regulatory action against its associate entity, Paytm Payments Bank Limited, by the Reserve Bank of India.
In an exchange filing, the company clarified that its broader ecosystem, including Paytm Gold and Paytm Money, remains unaffected and will continue normal operations. The statement comes after the RBI, in a press release dated April 24, cancelled the banking licence of Paytm Payments Bank Limited with effect from the close of business on April 24, 2026.
Company Filing Clarifies Independence from PPBL
"As previously disclosed on March 1, 2024, the Company does not have any exposure to PPBL or any material business arrangements with PPBL. No services provided by the Company are in partnership with PPBL. Additionally, PPBL operates independently, with no board or management involvement from the Company," the company said in its exchange filing.
The company also said there is no direct financial impact, noting that it had already impaired its investment in PPBL as of March 31, 2024.
RBI Action Limited to Payments Bank Entity
Reassuring stakeholders, Paytm said its services have been operating without interruption and will continue to do so, underlining that the RBI's action should be viewed strictly in the context of PPBL and not the listed entity. The RBI has cancelled the banking licence of Paytm Payments Bank Limited, citing regulatory violations and concerns over the bank's operations. (ANI)
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