RBI Action on Paytm Payments Bank, Not Paytm App

In a recent development, the Reserve Bank of India (RBI) has taken action against Paytm Payments Bank Limited, a distinct entity from the Paytm app.

The regulatory measure prohibits Paytm Payments Bank from accepting new deposits and conducting credit transactions, effective after February 29.

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It is crucial to distinguish between Paytm Payments Bank and the Paytm app to alleviate any confusion.

What is Paytm Payments Bank?

Paytm Payments Bank is a separate entity that provides banking services virtually.

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It offers facilities like zero-balance accounts, virtual debit cards, money transfers, withdrawals, internet banking, mobile banking, and UPI transactions.

In 2022, RBI had imposed restrictions on Paytm Payments Bank, preventing the addition of new customers.


What is Paytm App?

Paytm App, similar to ‘Phone Pay’ and ‘Google Pay,’ functions independently of Paytm Payments Bank.

Users can register with their mobile number linked to any bank account and conduct transactions without the need for a Paytm Payments Bank account.


Loading money into the Paytm wallet or linking directly with UPI facilitates transactions through the Paytm app.

Distinct Entities

Paytm founder and CEO Vijay Shekhar Sharma clarified that Paytm Payments Bank Limited (PPBL) and One97 Communication Limited (OCL), the owner of the Paytm app, are separate companies.

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PPBL is a group company of Paytm, with Paytm holding a 49 percent stake in it.

It’s important for users to recognize the difference between Paytm Payments Bank and the Paytm app to avoid any confusion, especially regarding the recent RBI action on Paytm Payments Bank. The Paytm app remains unaffected by the regulatory measures.


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