Paytm fiasco: Merchants must onboard alternative provider for UPI payments

Long-term, fundamentals-oriented investors should stay away from its stock for now

digital economy, UPI
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The RBI’s statements suggest it will not limit customers' ability to withdraw money from their PPB account

Sanjay Kumar Singh New Delhi
The Reserve Bank of India (RBI) recently imposed significant restrictions on Paytm Payments Bank (PPB). These restrictions, according to the central bank, are the result of “continued material supervisory concerns”.
 
Risks faced by UPI customers

Paytm’s Unified Payments Interface (UPI) service customers may not be hit too hard. Their Paytm UPI handle would be linked to a wallet, a PPB account, or another bank account. After February 29, they will not be able to add money to the wallet or the PPB account.
 
“You will still be able to spend the money in the wallet or the PPB account

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First Published: Feb 12 2024 | 12:37 AM IST

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