After the central bank cracked down on Paytm Payments Bank, the question is how will Paytm be affected? What part of the business could be lost and what will remain? Where does it go from here? Does it offer value? Here’s a breakdown of what happened and how it will affect the company
Bankers are wary of fraudulent merchants getting access to their systems during the transfer, bankers told ET. While fresh KYC is a standard procedure, in the situation that Paytm bank will have to transfer everything by February 29, additional KYC formalities could end up taking more time. Banks eyeing Paytms business include HDFC Bank, Axis Bank and Yes Bank.
“The action against Paytm should be followed up by some sort of clarification. RBI has been urged to bring in FAQs as many customers won't be aware of many issues,” an official said.