Paytm Payments Bank Tops Chart Amid Regulatory Scrutiny and Operational Challenges
Paytm Payments Bank Ltd (PPBL) has emerged with the highest number of complaints per branch, as reported in the Reserve Bank of India’s (RBI) latest annual report. With 501.86 complaints per branch, PPBL leads the tally, signaling operational challenges and customer grievances.
According to the RBI’s annual report covering the period from April 1, 2022, to March 31, 2023, a total of 3,513 complaints were lodged against PPBL. This figure underscores the concerns raised by consumers, highlighting areas of improvement for the digital banking entity.
The complaints channeled through RBI Ombudsman offices (ORBIOs), shed light on various issues faced by customers. Notably, mobile and electronic banking complaints were predominant, reflecting challenges in digital banking services.
While PPBL led the chart, other payment banks also faced significant complaint volumes. NSDL Payments Bank followed with 107 complaints per branch, while Airtel Payments Bank recorded 41.52 complaints per branch.
The report further reveals that a substantial percentage of resolved maintainable complaints were settled through mutual agreement, conciliation, or mediation, indicating efforts to address customer grievances amicably.
The findings come amidst regulatory actions against PPBL by the RBI. In January, the central bank imposed restrictions on PPBL, prohibiting it from accepting deposits, credit transactions, or top-ups after February 29 due to persistent non-compliance and supervisory concerns.
Despite regulatory restrictions, RBI Governor Shaktikanta Das reassured that nearly 80-85% of users on the Paytm app would remain unaffected. However, the deadline for compliance was extended to March 15, allowing PPBL additional time to address regulatory concerns.
In response to regulatory actions, PPBL has been actively seeking partnerships with established banking entities. Notably, it recently shifted its nodal account to Axis Bank and reportedly inked a deal with Yes Bank to transfer its merchant accounts.
As PPBL navigates through regulatory challenges and operational hurdles, its proactive efforts to address customer grievances and strengthen partnerships remain crucial for restoring trust and sustaining its market presence.
