The BBC reports that a Mumbai grocery store, which previously relied on Paytm’s digital payment services, is now requesting cash payments due to uncertainties surrounding Paytm’s survival.
The Reserve Bank of India has instructed Paytm to halt its banking division services, citing persistent non-compliance with regulations and allegations of financial crimes.
This directive impacts millions of Paytm users, who may no longer be able to deposit funds into their accounts after March 1st. Paytm denies the allegations and assures users that its app remains operational for certain transactions.
However, the regulatory crackdown has led to investor withdrawals and raised concerns about the company’s future. Paytm’s founder, Vijay Shekhar Sharma, is working to address the situation, but this isn’t the first time Paytm has faced regulatory issues.
The current crisis highlights broader questions about corporate governance in India’s startup ecosystem.
While some industry figures are calling for a rollback of sanctions on Paytm, the RBI governor emphasizes that the issue is specific to Paytm and not indicative of broader systemic concerns.
(BBC as a source)
https://www.bbc.com/news/world-asia-india-68248364