After the action of Reserve Bank of India, huge ups and downs are being seen in Paytm Payment Bank. Meanwhile, Vijay Shekhar Sharma has resigned from the post of Chairman of Paytm Payment Bank. Along with this, Vijay Shekhar Sharma has also resigned from the board of Paytm Payments Bank.
After the action of Reserve Bank of India, huge ups and downs are being seen in Paytm Payment Bank. Meanwhile, Vijay Shekhar Sharma has resigned from the post of Chairman of Paytm Payment Bank. Along with this, Vijay Shekhar Sharma has also resigned from the board of Paytm Payments Bank.
Major changes in Paytm Payment Bank
Actually, after the Reserve Bank’s action on Paytm Payment Bank, many changes have been made in the board. Paytm has said in a press release on Monday that the company’s founder Vijay Shekhar Sharma has decided to step down from the post of part-time non-executive chairman of Paytm Payment Bank. Along with this, he has also left the post of board member of PPBL.
After the resignation of Vijay Shekhar Sharma, the board of Paytm Payment Bank has also been reconstituted. In which many new faces have been included. Now former Chairman of Central Bank of India Srinivasan Sridhar will be a member of the board. Apart from this, retired IAS Debendranath Sarangi, former executive director of Bank of Baroda Ashok Kumar Garg and retired IAS Rajni Sekhri Sibal will be board members.
After the action of RBI, the existence of Paytm Payments Bank is under threat. Vijay Shekhar Sharma is the largest shareholder of this bank.
RBI’s advice for running Paytm Payment Bank
Let us tell you, only last week the Reserve Bank of India (RBI) has issued new guidelines regarding Paytm Payments Bank. Actually, if Paytm UPI services are linked to Paytm Payment, then it will not work after March 15. If this service is to be continued then customers and merchants will have to link their Paytm UPI to some other bank. Paytm’s parent company One97 Communication Limited is in contact with 4-5 banks for this.
At the same time, RBI has asked NPCI to take necessary steps to maintain Paytm’s UPI service. While issuing an advisory to NPCI, the central bank had said that in order to maintain the service through Paytm app, NPCI should provide the facility of certification of banks having the capacity to handle high volume UPI transactions as payment service providers. RBI has asked NPCI, the organization that oversees the operation of digital payments, to migrate the @paytm handle to other new banks.
Threat to Paytm Payment Bank after March 15
RBI has said that migration of UPI handle will be only for those customers and merchants whose UPI handle is linked to Paytm Payment Bank. This step of RBI will provide relief to those customers and merchants of Paytm Payment Bank whose UPI is linked to Paytm Payment Bank.
Paytm, along with Axis Bank, had applied to NPCI to act as a third party application provider for UPI business. Let us tell you, since UPI transactions happen through Paytm Payments Bank, Paytm is not currently classified as TPAP. On the other hand, 22 entities including Amazon Pay, Google Pay, Mobikwik, PhonePe and WhatsApp currently hold TPAP licenses.
It is worth noting that to keep any UPI account active, it is very important to link it to the bank account. Let us tell you that NCPI operates and monitors UPI transactions across the country. RBI has asked NPCI to review One 97 Communications Ltd’s request to become a third party application provider in the UPI system. RBI says that if OCL gets the status of Third Party Application Provider (TPAP), then @paytm handle should be migrated seamlessly without causing any difficulty to the customers.
