GUWAHATI: Paytm on Friday said its services will continue without interruption and there will be no financial impact on the company after the Reserve Bank of India cancelled the banking licence of associate entity Paytm Payments Bank Limited with effect from close of business on April 24.
In a stock exchange filing, Paytm said PPBL is a separate entity operating independently and that the listed company has no exposure or material business arrangements with the payments bank. It added its investment in PPBL had already been impaired as of March 31, 2024, limiting any direct financial hit.
The company said all its services, including the Paytm app, UPI, Paytm QR, Soundbox, card machines and payment gateway operations, remain fully operational.
Paytm also said no services currently provided by the company are in partnership with PPBL and urged stakeholders to view the regulatory action in the context of the payments bank alone.
The clarification came after the RBI cancelled PPBL’s banking licence with effect from close of business the same day, citing concerns including conduct detrimental to depositors’ interests, management actions prejudicial to public interest, and non-compliance with conditions stipulated under the payments bank licence.
RBI also said allowing the bank to continue would serve no useful public purpose, while noting PPBL has enough liquidity to repay deposit liabilities upon winding up.
Paytm, however, maintained the action would not disrupt its operations, reiterating that its consumer and merchant services remain unaffected despite the regulatory action against the associate entity.
