Paytm Payments Bank ban: Founder Vijay Shekhar Sharma says app will continue to work as usual

Sharma ended his post by saying that India will keep winning global accolades in payment innovation and inclusion in financial services – ‘with PaytmKaro as the biggest champion of it’.

To every Paytmer,
Your favourite app is working, will keep working beyond 29 February as usual.
I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full…

— Vijay Shekhar Sharma (@vijayshekhar) February 2, 2024

On Thursday, the Reserve Bank of India issued a notification regarding the ban on accepting deposits or top-ups to the Paytm Payments Bank and linked services. RBI cited ‘persistent non-compliance and continued material supervisory concerns in the bank’ under Section 35A of the Banking Regulation Act, 1949 as its primary reason.

Besides, RBI also banned Paytm Bank from onboarding new users from Feb 29, 2024. Following the announcement, Paytm stocks took a hit.

Following the notification, there were several misconceptions about the ban. However, the ban on Paytm Payments Bank will only affect users who are currently using Paytm-linked services like wallets, FASTags, NCMC (National Common Mobility Card) cards, and more. Users will still be able to withdraw their money.

Paytm, the Indian multinational fintech company, was founded by Vijay Shekhar Sharma in 2010. Owing to its innovation and ease of use, the company has won several awards over the years. The company’s gross merchandise value was reported to be Rs 13.2 lakh crore for the fiscal year 2022-23.