Mumbai . One97 Communications i.e. Paytm is not taking the name of its suffering. IBI has also given a setback to the company, which is facing many problems including a sharp fall in share prices, low estimates of business growth. RBI has prohibited Paytm Payments Bank from making new customers.
On March 11, the Reserve Bank banned Paytm Payments Bank from adding new customers. Along with this, RBI has ordered to conduct IT audit of Paytm Payments Bank. The meaning of IT audit is that the company’s IT infrastructure i.e. software is capable of bearing the burden of many customers, what are the flaws in it and why they are coming, all these will be investigated.
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McVay after thatRi has released its report about One97 Communications. One97 Communications is the parent company of Paytm Payments Bank. Let us know what Macquarie has said in his report.
how much impact on business
Macquarie has said that the RBI’s decision will not have much impact on Paytm’s business. Paytm is one of the largest fintech companies in the country. Paytm was listed in the stock markets last year. Macquarie has said that RBI’s move may set aside efforts to convert Paytm Payments Bank into a small finance bank.
impact on brand
The report said, “We do not expect the RBI’s move to have much impact on Paytm’s business. The reason for this is that Paytm has already been successful in creating a huge customer base for its payments bank. However, we expect this to have an impact on the Paytm brand. There may also be an impact on customer loyalty going forward.
Difficulty getting license
Industry sources also justified Macquarie’s view. He said, “Business is not going to be impacted much as the transaction value does not depend on the new customers. But, this move of RBI has come at a bad time, as it shows the lack of trust of RBI in Paytm. This comes at a time when Paytm is about to ask for a banking license from RBI.”
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Macquarie said the new developments have reduced the chances of Paytm Payments Bank to transform itself into a small finance bank. Paytm Payments Bank had said that it would apply for a banking license with RBI in March this year. Moneycontrol had reported about this on 9 March.
Market share in UPI
Paytm Payments Bank offers all types of products that belong to Paytm. These include UPI as well. Paytm has a 16 per cent share in the UPI market. Paytm Wallet has more than 33 crore accounts. It has been said in the report that the ban on creating new customers of Paytm Payments Bank means in a way a ban on creating new customers of Paytm.
Tags: bank, Bank news, Paytm, Paytm Mobile Wallet, RBI
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