Cheggout’s Post

Paytm Payment Bank is shutting down banking services. 🏦📉 What's happening? Ø The Reserve Bank of India has restricted Paytm Payment Bank from continuing banking services starting February 29th.  Ø Now, Paytm is discussing with Axis, HDFC, and Yes Bank to take over the payments and transactions from Paytm Payment Bank. Ø Any new payment system from Paytm will need approval from RBI first. How will this impact users? 😕 Ø Unlike other fintech apps, Paytm had its own settlement systems since it was a bank. Now, it just has the mobile app. Ø With the large volume of transactions Paytm handles monthly, this change will require major backend adjustments.  Ø In December alone, Paytm processed 2.8 billion UPI payments. That's a lot of transactions that will shift! Impact on bill payments: Ø Paytm Payment Bank is the 3rd largest for bill payments on NPCI's Bharat BillPay. Ø In December, 16 million bill payment transactions happened on Paytm - making it 3rd after PhonePe and BillDesk. Ø Like UPI, these transactions will also move to other banks, causing significant backend shifts. In summary, Paytm banking shut down will require overhaul of transactions and payments to new banks. Large volumes are involved. Users may need to adjust bill payments. But Paytm assures smooth transition. Stay tuned! #paytm , #digitalpayments , #fintech , #mobilepayments , #npci , #rbi , #ConsumerPayments

#PaytmBank #RBI #FinMin #Fintech #DigitalEconomy #StandWithPaytm In a shocking action by India’s Central Bank (RBI) against Paytm Payment Bank (PPBL), which have widespread ramifications for millions of users, retail investor of Paytm, merchants, indirect employment created though sale of PPBL’s financial products and the broader digital payment ecosystem in India. Was such punitive action against #PPBL only option? Is there any fraud? Is there any money laundering? Are activities of PPBL against the Nation? No money laundering was found as per recent reports, although there was lapses related to KYC. Comments by Banker Uday Kotak and #Phonepe are just opportunistic. Paytm Payment Bank has been pioneered in democratizing access to financial services, particularly in remote areas where traditional banking infrastructure is lacking. Its innovative platform like Multi-lingual Digital Sound Box for merchants, All-in-one financial app, NCMC, POS Terminal for digital payment & collection has empowered users and merchants alike, enabling them to participate in the digital economy with ease and convenience. It’s a major setback to the technology entrepreneur Vijay Shekhar Sharma. RBI could have considered other option like suspending the Board and taking control of the Board of PPBL (as was done in the case of #YesBank) to enforce the regulatory & other compliances which can allow smooth functioning of PPBL services to its users and merchants. However, the RBI's punitive measures not only jeopardize the future of Paytm Payment Bank but also cast a shadow of uncertainty over the entire digital payment landscape. Users who rely on Paytm for everyday transactions, especially in remote areas where banking options are limited, may face disruptions and inconvenience. Moreover, merchants who have integrated Paytm into their businesses as a preferred mode of payment are facing sudden operational challenges as a result of the RBI's actions. This could hinder the growth of small businesses and stall the momentum of India's digital payment revolution. I am not against compliances, but other actions could have been considered. I urge for a fair and transparent regulatory framework that fosters innovation, inclusion and economic growth.

Decoding Paytm Paytm Payments Bank PAYTM - Pay through mobile an app in India which started as a recharge platform in 2010 Paytm Mission - To bring 500 million unserved and underserved Indians into the mainstream economy through financial services, commerce, and payments Problem statement - Challenges faced by individuals and businesses in accessing banking services efficiently and securely. Objective - To provide a digital-first, mobile-friendly banking experience that offered seamless integration with Paytm's existing ecosystem of services. Product service/offerings - Paytm Payments Bank offers savings and current accounts with a debit card, facilitating fast and easy payments. What problem did they solve by this product? Traditional banking method had a lengthy process to do which a rural people could not understand so by using Paytm Payments Bank they can easily open their accounts and in traditional method it involved high fees and charges, especially for basic transactions where this also gets solved as its cost effective So it solved the reach of such services in rural areas where people have access through mobiles Paytm Payments Bank aimed to provide a broad spectrum of users with accessible, efficient, and user-friendly banking services through its digital platform. Paytm Payments Bank Target Personas Small business owners Tech Savy people Unbanked and Underbanked Populations Cost-Conscious Consumers Urban and Rural Consumers They could have also targeted students who are minor and are looking for opening their savings account A true PM always takes feedbacks and keeps on improving to make the product sustainable Paytm Payments Bank had a loop hole which nobody noticed so 1 PAN was linked to more than 100 customers and multiple fake accounts were created by people for fraudulent purposes. This is when the downfall starts if you overlook the loop holes and sadly Reserve Bank of India (RBI) has noticed that customers cannot deposit/credit as Paytm violated Reserve Bank of India (RBI) rules and regulations, data breaches and many more. Thanks Shravan Tickoo for always teaching us the right things My people - Attharv Unnati Ashu Rishabh Sonali Soni Somi bhishm Navnath Ashutosh Sahira Khyati Suraj Dr. Nancy Li Pritesh Jagani #product #paytm #productmanagement #decodingproducts

📌 RBI Bars Paytm Payments Bank , but UPI Payments and Wallet Continue Unaffected: ✓ The Reserve Bank of India (RBI) has decided to stop the services of Paytm Payments Bank starting from 1st March, with 29th Feb 2024 being the last date due to supervisory issues in the top management and functioning. ✓ However, this decision does not impact UPI payments and wallet services provided by Paytm. 📌 For Paytm Users: ✓ All UPI Payments will keep working: Users can continue to make UPI payments through the Paytm app without any interruption. ✓ Paytm Wallet will keep working: Users can still use their Paytm wallet for making transactions and payments. ✓ Fastag will keep working: Users can continue to use Paytm Fastag for seamless toll payments. ✓ All bookings will continue to work seamlessly: Users can make bookings for flights, hotels, movies, and other services through Paytm without any issues. ✓Paytm QR, Paytm Soundbox, Paytm Card Machine, all Paytm gadgets will continue to work: Users can use all Paytm devices and gadgets for accepting and making payments. 📌Problem Area: Customers who have accounts with Paytm Payments Bank should be concerned and move their money and accounts to other banks. 📌Clarification from Paytm: ✓ Paytm has assured users that it will soon tie up with other banks to address the banking issue. ✓ RBI has allowed the withdrawal of money from Paytm Payments Bank after 1st March. 📌Misinformation Clarification: ✓ Mutual Fund Investments via Paytm: Mutual fund investments made through Paytm Money are regulated by SEBI, not RBI, hence they are not affected. ✓ Continuity of UPI Transactions: UPI transactions through Paytm will not stop; Paytm can switch its backend banking partner to ensure continuity of UPI payments through the app. 📌Example of Smooth Transition: When YES BANK collapsed, PhonePe onboarded ICICI Bank in less than 18 hours. Similarly, Paytm can switch its backend banking partner with relative ease. Overall, Paytm users can rest assured that their UPI payments and wallet services will continue without interruption, although customers with accounts in Paytm Payments Bank should transfer their funds to other banks. #paytm #finance #fintech #paytmkaro #banking

Imagine withdrawing cash from an ATM without needing your card. Or depositing cash at a machine using just your smartphone. Thanks to the trailblazing efforts of the National Payments Corporation Of India (NPCI) and the Reserve Bank of India (RBI), this is now a reality with the UPI-ATM Interoperable Cardless Cash Withdrawal (ICCW) service! 👉 Here’s How It Works: Select ‘UPI Cash Withdrawal’ at the ATM. Enter the withdrawal amount. Scan the dynamic QR code displayed on the ATM screen using any UPI App. Authorize the transaction with your UPI PIN on your mobile app. Collect your cash. ✅ Key Features: Interoperable: Use any participating bank’s ATM without a card. Convenient: No need to carry your card for ATM withdrawals. Secure: Each transaction is protected with a single-use dynamic QR code. Flexible: Withdraw up to ₹10,000 per transaction, subject to your bank's UPI limits. 👉 Here's a sneak peek at the participating banks and UPI Apps live with this revolutionary service: Banks: State Bank of India, Bank of Baroda, Union Bank of India, ICICI Bank, Yes Bank, and many more. UPI Apps: BHIM UPI, PhonePe, Google Pay, and others. RBI has also announced the forthcoming ability to deposit cash using UPI at cash deposit machines (CDMs). The anticipated steps will be as seamless as withdrawing cash: Select ‘UPI Cash Deposit’ at the CDM. Enter the deposit amount. Scan the QR code displayed on the screen. Insert the notes into the machine. Confirm the transaction on your UPI app. This remarkable innovation is set to redefine our banking experience, making transactions more efficient and customer-friendly. Kudos to National Payments Corporation Of India (NPCI) and Reserve Bank of India (RBI) for their relentless pursuit of excellence in banking technology. Your innovations continue to pave the way for a more convenient and secure banking ecosystem. 🟢 Opportunities Abound: These advancements open the door for #FinTech startups to explore new products and services, harnessing the power of technology to meet the evolving needs of consumers. How you see this innovation? Follow CA Manish Mish₹a for Financial Regulatry affairs. #BankingInnovation #UPI #NPCI #RBI #Fintech #DigitalIndia #TPAP #CashlessTransactions #FutureOfBanking

RBI Mandate: Paytm QR Codes and Soundboxes Operational Only with Merchant Bank Migration In a significant development impacting the digital payments landscape in India, the Reserve Bank of India (RBI) has issued a mandate requiring Paytm QR codes and soundboxes to remain operational only if merchants migrate to other banks. This directive has sparked discussions and debates within the fintech and banking sectors, as stakeholders navigate the implications of this regulatory change on the future of digital payments in the country. The mandate comes amidst increasing regulatory scrutiny over the concentration of transactions within a single bank and concerns regarding systemic risks associated with such arrangements. Paytm, one of India's leading digital payment platforms, has traditionally operated under a closed-loop system, wherein transactions are processed internally without involving external banks. While this model has enabled Paytm to streamline its operations and offer seamless payment experiences to users and merchants, it has also raised questions about interoperability and market competition. Under the new mandate, Paytm QR codes and soundboxes will only remain operational for merchants who choose to migrate their accounts to other banks. This move is aimed at promoting interoperability and reducing systemic risks by diversifying transaction volumes across multiple banking institutions. By spreading the load across various banks, the RBI hopes to enhance the resilience and stability of the digital payments ecosystem, safeguarding against potential disruptions or failures. #RBIMandate #PaytmQR #SoundboxMigration #DigitalPaymentsIndia #FintechRegulation #BankingSector #Interoperability #SystemicRisk #FinancialStability #DigitalPaymentTrends #FutureOfPayments #BankMigration #ResilientPayments #DigitalIndia

💹 The Unified Payments Interface (UPI) is now among the top choices for payments in the country. To make UPI payments even better, some rules and changes were announced from time to time. 💫 👉 Here’s a summary of the most important ones: 🌐 1️⃣ Deactivation of Inactive UPIs: The National Payments Corporation Of India (NPCI) has asked payment apps like Paytm, Google Pay, PhonePe, and banks to disable UPI IDs and numbers that have been inactive for over a year. UPI IDs and linked mobile numbers that haven’t been used for transactions for over 12 months will be deactivated. This aims to curb dormant accounts and potential misuse. 2️⃣ Increased Transaction Limits: National Payments Corporation Of India (NPCI) has set a new maximum daily payment limit of Rs 1 lakh for UPI transactions. However, the Reserve Bank of India (RBI) on December 8 increased the UPI transaction limit for education and healthcare facilities to Rs 5 lakh. Earlier, the transaction limit was Rs 1 lakh. 3️⃣ Interchange Fee: This change was announced in early 2023. For specific merchant UPI transactions exceeding Rs 2,000 and conducted through prepaid payment instruments (PPI) such as online wallets, an interchange fee of 1.1 percent will apply. Customers need to know that they will not incur any additional costs while making transactions. 4️⃣ Four-hour Time Limit: As per reports, to reduce the growing cases of online payment fraud, it is expected that there will be a four-hour time limit for the first payment exceeding Rs 2,000 between users who haven’t transacted before. Reportedly, soon UPI users will be able to activate the ‘Tap and Pay’ feature. However, an official announcement is yet to be made. 5️⃣ UPI ATM: RBI is set to introduce UPI ATMs nationwide. With these ATMs, you can scan a QR code to withdraw cash directly from your bank account. UPI transactions in November 2023 clocked a fresh peak in value hitting Rs 17.4 trillion, up 1.4 percent compared to Rs 17.16 trillion in October 2023. At the same time, the number of transactions reduced by 1.5 percent to 11.24 billion versus a record high of 11.41 billion a month earlier. #upi #upitransaction #onlinetransaction #epayments #digitalmoney #digitalpayments National Payments Corporation Of India (NPCI) NPCI International Payments Limited (NIPL) NPCI Bharat BillPay Ltd. NPCI Fintech Solutions Reserve Bank of India (RBI) PayU Ankur Warikoo Sharan Hegde

India's digital payment landscape is booming! The Reserve Bank of India (RBI) recently announced the launch of an interoperable net banking payment system later this year. This exciting development can further revolutionise how Indians pay and how businesses get paid. This system will ensure a seamless transfer of funds between different bank accounts through net banking, regardless of the bank involved. This will improve merchant efficiency and give them quicker access to funds received from customers. This move by the RBI follows the phenomenal success of UPI (Unified Payments Interface). With its user-friendly interface and instant settlements, UPI has become India's go-to platform for digital transactions. The interoperable net banking system and UPI's continued growth pave the way for a truly cashless India. Increased digital payment adoption will benefit both consumers and businesses, fostering greater financial inclusion and economic development. #DigitalPayments #India #RBI #Fintech #Innovation Reserve Bank of India (RBI) Paytm Razorpay PhonePe Payment Gateway BillDesk Cashfree Payments Instamojo Easebuzz Citrus Payment Solutions Pvt. Ltd MobiKwik PayU JUSPAY PayPal https://lnkd.in/gTnxC6gD

🚀 Exciting News in the Fintech World! Paytm Partners with Axis Bank for Merchant Settlements Amid Regulatory Changes 📈 In response to recent regulatory changes and challenges faced by Paytm Payments Bank, Paytm has made a strategic move by partnering with Axis Bank for merchant settlements. This decision aims to ensure the seamless continuation of services for merchants and customers alike. Here's a quick breakdown: 🔍 Background: With the Reserve Bank of India (RBI) issuing directives and concerns raised regarding KYC irregularities, Paytm has swiftly taken action to address the situation. 🤝 Partnership with Axis Bank: Paytm has transitioned its nodal account to Axis Bank, allowing for the smooth settlement of merchant transactions. This move ensures the continuity of services such as Paytm QR, Soundbox, and card machines beyond the March 15 deadline set by the RBI. 🔒 Regulatory Compliance: By adhering to RBI guidelines and proactively addressing concerns, Paytm is prioritizing regulatory compliance and customer trust. This underscores the importance of transparency and accountability in the fintech industry. 💼 Impact on Customers and Merchants: The extended deadline provided by the RBI offers flexibility for customers and merchants to transition their accounts to other banks. Paytm users can continue to utilize their accounts and services without disruption. 🌐 Looking Ahead: As Paytm navigates this transition and addresses regulatory challenges, it highlights the evolving landscape of the fintech sector. It's a testament to the resilience and adaptability of companies in the face of regulatory changes. This development showcases the dynamic nature of the fintech industry and emphasizes the significance of partnerships and regulatory compliance. Stay tuned for further updates as Paytm continues to innovate and navigate through these changes! #Fintech #RegulatoryCompliance #Partnerships #Paytm #AxisBank #FinancialServices #Innovation #Banking #Payments #RBI #FintechNews Feel free to share your thoughts and insights on this significant development in the comments below! 🚀📊

RBI bans Paytm Payment Bank from acquiring new customers ! There is confusion and misinformation about this news due to media influence. Some clarification and a clear reminder of RBI sanctions are needed : 💡Paytm payments bank processes transactions for Paytm, providing a range of banking services such as accepting deposits and credit transactions. 🚫 The Paytm Payments Bank has been barred from UPIP transactions, not Paytm itself. 🔹 Reserve Bank of India (RBI)'s main sanctions against Paytm Payments Bank: 👉 " No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets" 👉 "Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, upto their available balance." 👉No other banking services, other than those referred in above, like fund transfers .... ➡️ Reserve Bank of India (RBI) press release https://lnkd.in/dFCm7mhS 📢 Paytm guarantees the security of mutual fund investments and SIPs through SEBI regulation. Paytm Money ltd, a separate company, is registered with SEBI as a Stock Broker and Depository Participant to ensure the safety of these investments. Will UPI transactions through Paytm stop after February 29th ? No, there has been a misunderstanding in the media. 🔹Paytm, PhonePe, Google Pay , CRED pay , etc.., all use backend partnerships with specific banks for UPI. 🔹For PhonePe, its a mix of YES BANK and ICICI Bank . For GPay it’s Axis Bank. And for Paytm, it’s the sister company Paytm Payments Bank . 🔹Paytm can switch its banking partner ( quickly ) and continue UPI payments. PhonePe did the same ( in less than 24h ) when Yes Bank faced a crisis ( https://lnkd.in/dJejffbd ). The current situation does not seem to be of significant consequence for the future continuity of the UPI service at Paytm. As for the immediate consequences in the stock market, that's another story. Other Source➡️The Indian Express article https://lnkd.in/dMPE5_z4 #Paytm #DigitalPayments #BankingIndustry #FinancialServices #India, Neeraj Malhotra ,Sanjeev Kumar