The RBI s action prohibits the bank from accepting further deposits, conducting credit transactions, or carrying out top-ups on customer accounts after February 29. Paytm wallet users will still be able to use their existing balance until it is exhausted, but they will not be able to add any more money to their accounts. The RBI s move comes after concerns were raised about money laundering and questionable dealings within the bank.
The recent restrictions imposed by RBI on Paytm have raised concerns about the security and continuity of financial services provided by the platform, says CAIT secretary general Praveen Khandelwal
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CAIT secretary general Praveen Khandelwal said the recent restrictions imposed by RBI on Paytm have raised concerns about the security and continuity of financial services provided by the platform.
"The Reserve Bank of India has imposed certain restrictions, prompting CAIT to recommend that users take proactive measures to protect their funds and ensure uninterrupted financial transactions. Large number of small traders, vendors, hawkers and women are making payments through Paytm and as such RBI restrictions on Paytm could lead financial disruption to these people," the Confederation of All India Traders (CAIT) stated.