Paytm Payments Bank: Reserve Bank of India (RBI) The last date of the ban imposed by Paytm Payments Bank against Paytm Payments Bank is 15th March, now only 2 days are left. Paytm, which is facing a huge crisis after the action of RBI, is still not able to decide the name of the bank to which the accounts of Payments Bank will be given. Currently, Axis Bank, Canara Bank, Yes Bank and Kotak Mahindra Bank are leading the race to transfer these Paytm merchants. However, no name has been finalized by Paytm yet.
There were 3 crore merchant accounts at the time of the action
Paytm Payments Bank, owned by One97 Communications, has been banned from taking deposits. Earlier its last date was 29th February, then it was extended to 15th March. When action was taken against Payments Bank, Payments Bank had about 3 crore merchant accounts. The bank acted as a payment service provider to onboard these merchants. According to the Money Control report, it is not yet clear whether any one bank will be selected or a small number of accounts will be transferred to all. At present, these banks have also maintained silence on this issue.
RBI had cleared the doubts
RBI had cleared many doubts on this issue by issuing an FAQ a few days ago. Also, merchants and UPI users were allowed to use Paytm handle. Apart from this, orders were given to keep QR code and point of sale machines running. RBI is trying to ensure that merchants and customers do not face any problem even after March 15.
Annual expenditure of banks will increase by Rs 70 crore
According to the report, there is currently a brainstorming going on in the banks as to which banks will accept different types of merchants. Also, how many of these transactions are less than Rs 2000. All the banks are estimating to spend approximately Rs 50 to 70 crore annually on this process. This much money will be spent on handling billions of transactions of the Payments Bank.
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