RBI Bans Transactions by Paytm Payments Bank

Vijay Shekhar Sharma, Paytm founder, has assured employees of no layoffs amidst regulatory issues. The RBI has banned Paytm Payments Bank from accepting deposits or facilitating credit transactions from 29 February, due to regulatory concerns and non-compliance. In response, Paytm is seeking an extension to the deadline and clarity over the transfer of its licence for its wallet business and Fastag service. Despite the challenges, shares in Paytm's parent company, One97 Communications, rose by 9% on 6 February, following Sharma's meeting with India's finance minister and the RBI.