Paytm's loss is Airtel's gain? Airtel Payments Bank sees spike in new customers - Hindustan Times
close_game
close_game

Paytm's loss is Airtel's gain? Airtel Payments Bank sees spike in new customers

Feb 09, 2024 09:44 PM IST

“Be it for fixed deposit, for bank account or for FASTag, all digital products are 5-7 times the January rates”: Airtel Payments Bank CEO

Airtel Payments Bank has experienced a remarkable surge in new customers applying online for various services, including bank account openings and FASTags, over the past few days, according to its chief executive officer Anubrata Biswas, PTI reported.

Paytm Payments Bank sees gradual decrease in its customers.
Paytm Payments Bank sees gradual decrease in its customers.

ALSO READ- Paytm to form advisory committee on compliance, regulatory matters led by ex-SEBI head

Hindustan Times - your fastest source for breaking news! Read now.

While Biswas did not explicitly confirm a direct correlation to users shifting from Paytm Payments Bank following the RBI's action on January 31, he acknowledged the substantial increase in digital product applications.

The RBI directed Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. Despite nudges and warnings over some time, persistent non-compliance with regulatory guidelines led to stern action against the fintech. The RBI has clarified that there are no systemic concerns.

ALSO READ- EPFO bans Paytm Payments Bank: What changes for customers?

Speaking about the performance and operational metrics of Airtel Payments Bank, Biswas said, "All our digital products, be it customers who have an account applying for fixed deposit, be it new customers applying online for bank account or customers applying for FASTag, all are 5-7 times the January rates. This has happened over the last few days."

The online application for digital products, such as savings bank accounts and FASTag products, has grown 5-7 times in the last few days, according to Biswas.

"There seems to be a swelling of uptake on Bank's products for whatever context there may be...," he said.

ALSO READ- Paytm crisis: No ED investigation either against company or CEO, company asserts

On the other hand, Paytm Payments Bank is reportedly witnessing a gradual decline in transaction volumes. Customers are uncertain about the future, contributing to the drop in transactions.

However, sources familiar with the matter suggest that there has only been a 10 per cent-15 per cent decline in transaction volumes handled via Paytm Payments Bank so far, reported Reuters.

If the pace doesn't quicken, there is speculation that the central bank may consider extending the deadline, it added.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 01, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On