Paytm crisis: A short story on India's most trusted fintech platform
The Reserve Bank of India has announced that Paytm's payment Bank will be stop working from Feb 29 of 2024. In this blog we will elucidate what is really happening to Paytm and the major reasons for this big announcement. • What is the difference between a commercial bank and payment Bank ? Payments Banks are created by RBI to enhance the unorganised and the small sector in our country and also to make tier 3 of India to get access to digital payments. However payments Bank can accept maximum deposit of 1 lakh and can offer credit cards and loan only when they have link with a commercial bank. • Why the people cannot directly go the commercial bank for loan? The magic with payments Bank is that they have a robust data about your transaction history and identification documents by the help of which they can fetch you a personal loan in just 5 minutes. Zero balance account can also be maintained in payments Bank. Why RBI banned Paytm payments Bank ? Th...