India’s central Bank, the Reserve Bank of India (RBI) has cracked down on One 97 Communication’s Paytm Payments Bank lately. RBI has imposed a number of sanctions on Paytm Payments Bank due to regulatory concerns. This move could also affect India’s already weary crypto arena as Paytm is one of the prominent modes of payment for crypto purchases.
RBI’s Ban On Paytm And The Aftermath
The RBI announced on January 31 that it would no longer accept deposits or top-ups for Paytm Payments Bank, and any of its related services. The regulatory action is attributed to “persistent non-compliance and continued material supervisory concerns” under Section 35A of the Banking Regulation Act, 1949. This action, which impacts millions of users underscores the seriousness of the RBI’s concerns.
One 97 Communications Limited, in response to the sanctions announced shortly thereafter, revealed plans to further strengthen its ties and relationships with third-party banking institutions. OCL aims to navigate the ban’s impact by expanding collaborations to distribute payments and financial services products.
Paytm Payments Bank Ban will take effect on February 29, a blow to Paytm’s users. Furthermore, it’s essential to note that the One 97 Communication stock…