Paytm effect: BSE asks members to avail other bank facilities

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Following the the Reserve Bank of India’s recent restrictions on Paytm Payments Bank Ltd, BSE has advised its trading members to have additional bank accounts to avoid any impact on transactions on account of the central bank directive. “Investors are hereby informed that restrictions may impact securities market transaction of those investors who have registered bank accounts of only Paytm Payments Bank Ltd., with their trading members. In view of the same, investors are advised to review their current banking arrangements,” BSE said in a statement.

The central bank earlier had imposed restrictions on Paytm Payments Bank and barred the entity from offering incremental banking services effective March 15, due to concerns regarding breach of and compliance with regulatory norms.

The regulator had, in March 2022, directed Paytm Payments Bank to stop onboarding new customers and appoint an IT audit firm to conduct a comprehensive System Audit.

Paytm Payments Bank will not be allowed to accept deposits or undertake credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags and NCMC (National Common Mobility Cards), among others.