Big news for Paytm users! After RBI’s action, the company told whether the app will work or not?

The country’s leading fintech company Paytm (One97 Communications Limited) has given big relief to crores of its users and investors. The company has clarified its position regarding the recent action taken by the Reserve Bank of India (RBI) on Paytm Payments Bank Limited (PPBL). Paytm says that this action will not have any impact on their core business and operations. The company is moving forward with full strength and does not have any commercial arrangements with the banking unit which could pose any major risk.

There is no risk on business

The Noida-based giant has informed the stock market that Paytm Payments Bank (PPBL) operates as an independent entity. Paytm clarified that the company has no interference in the board or management of the bank. On March 1, 2024 itself, the company had made it clear that they do not have any risky agreement with PPBL. The biggest thing is that the company has already written off its investment in the bank on March 31, 2024, so now there will be no new financial burden on the company.

Will Paytm app and Soundbox continue to operate?

The biggest question in the minds of users was whether their favorite services would be stopped? On this, Paytm has clarified that none of its services is dependent on PPBL. Paytm App, Paytm UPI, Paytm Gold and all other subsidiaries’ services are working normally as before. Be it Paytm QR code placed at the shop, soundbox, card machine or Paytm Money and payment gateway – all these services will continue without any interruption. The company has assured that these services will continue to run uninterrupted in future also.

Movement in the stock market and the way forward

Amidst this entire incident, there was a slight decline in Paytm shares on Friday. According to BSE data, shares of One97 Communications closed 1.10 per cent lower at Rs 1,147.10. The stock had also reached a low of Rs 1,142.65 during trading. However, with this clarification from the company after the regulatory action, it is expected that the shares may once again see a rise when the market opens on Monday. The company has made it clear that it is committed to providing the best experience to its customers while following the rules.