According to a report in Business Standard, the recent regulatory action by the Reserve Bank of India (RBI) to halt Paytm Payments Bank from accepting new deposits or facilitating credit transactions post-February 29 is not anticipated to significantly disrupt payment services. The report suggests that the majority of Paytm’s UPI app users have already linked their accounts with alternative banks, reducing the impact of the central bank’s measures.
Data Indicates Limited Impact on Paytm’s UPI Users
Citing insights from banking industry sources, the report reveals that out of approximately 90 million users of the Paytm UPI app, a substantial portion—75 million—have also installed and linked accounts with other UPI apps. Moreover, only 15 million users exclusively rely on the Paytm UPI app. This data suggests that the restrictions imposed on Paytm Payments Bank are unlikely to have a significant impact, as the majority of users have diversified their banking connections beyond the platform.
Resilience of Paytm’s UPI Ecosystem
The report highlights the resilience of Paytm’s UPI ecosystem, indicating that approximately 90% of Paytm’s UPI users have established links with alternative banks. Moreover, many users maintain multiple backend accounts that fall outside the purview of the RBI’s regulatory restrictions. This diversification mitigates the potential disruption caused by the limitations placed on Paytm Payments Bank, ensuring continuity in payment services for the vast majority of users.
