The Reserve Bank of India (RBI) prohibited Paytm Payments Bank Ltd., also known as PPBL (Paytm Payments Bank Ltd.), from accepting new customers on Friday. Meanwhile, One97 Communications, Paytm’s parent firm, has stated that this suspension will not affect any existing Payments Bank users. Users, on the other hand, will not be able to sign up for Payments Bank’s service until further notice. Existing Paytm clients can continue to transact on the platform in the meantime.
UPI IDs can be created by users.
When a new user first opens the Paytm app, he can sign up for Paytm UPI and create a new UPI ID. It can be linked to a Paytm Payment Bank account or another bank account. Users will not be able to open a new PPBL Wallet, PPBL Savings, or PPBL Current Account until further notice.
On the 23rd of May, 2017, the project began.
Paytm Payments Bank was established on May 23, 2017. Moneycontrol has reported that Vijay Shekhar Sharma’s Paytm Payments Bank is set to apply to the RBI for a Small Finance Bank licence (SFB). According to sources, Paytm Payments Bank would be able to submit the application by June of this year.
What is UPI and how does it work?
You can simply transfer money from your home using a facility like the Unified Payments Interface (UPI) for digital payments. Apps that support UPI, such as Paytm, PhonePe, BHIM, Google Pay, and others, are required. The unique feature of UPI is that it allows you to send money even if you only have one piece of information, such as a scanner, a mobile number, or a UPI ID.
Paytm issued a statement in response to the data breach allegations, claiming that the article is “false and dramatic.”
One of the country’s largest payments banks, Paytm Payments Bank Ltd. ie PPBL, claimed on Monday that claims claiming data leaks to Chinese corporations are “false and dramatic.” According to a Bloomberg article, the RBI stopped Paytm Payments Bank from admitting new customers on March 11 because it enabled data to transit to servers outside of India, which was against Indian standards.
“The latest Bloomberg article suggesting data leaks to Chinese corporations is untrue and dramatic,” Paytm Payments Bank tweeted. Paytm Payments Bank takes pride in being a wholly domestic bank that follows all RBI data transmission guidelines. The bank’s data is kept entirely within the country.
Paytm Payments Bank will be unable to accept new clients.
The Reserve Bank of India (RBI) recently prohibited Paytm Payments Bank from accepting new customers. In addition, the central bank has ordered Paytm Payments Bank Ltd to undergo an IT audit. The purpose of an IT audit is to determine whether a company’s IT infrastructure, such as software, is capable of supporting a large number of clients, as well as what problems exist and why they are occurring.