Indian digital payments firm Paytm sought to reassure customers on Thursday after the Reserve Bank of India (RBI) barred its payments bank from taking on new business, including opening fresh accounts.In a regulatory order, the central bank prohibited Paytm Payments Bank Limited (PPBL) from accepting fresh deposits and issuing credit with effect from 1 March.The dramatic intervention raised concerns about PPBLs operations and signalled significant regulatory unease with the functioning of the bank.Paytms parent company One97 Communications Limited (OCL) said PPBL was taking immediate steps to comply and was engaging closely with the RBI to address its concerns swiftly.Crucially, OCL stressed that the restrictions would not affect users existing deposits in PPBL savings accounts, digital wallets, toll payment tags and other accounts. Customers can continue utilising current balances as usual, it said.However, Paytms payments bank will be barred from opening new accounts from next month. OCL said it would accelerate plans to shift completely to banking partners other than PPBL for deposits and credit services.Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited, the company said in a statement.Paytms offline merchant services, including QR code payments, soundboxes and card machines, will continue operating normally. The company can still onboard new offline merchants.OCL and Paytm Payments Services Limited will shift their nodal accounts from PPBL to other banks before the February 29 deadline imposed by the RBI.Paytm stock crashPaytms stock plummeted 20 percent in early trading on February 1 after the Reserve Bank of India imposed major constraints on the companys lending operations, including barring it from taking new deposits and making credit transactions after February 29.
