Paytm Payments Bank will stop accepting new deposits and top-ups after February 29 due to regulatory violations, according to the Reserve Bank of India. Meanwhile, there has been a rise in downloads of PhonePe, and other apps.
Last Monday, the RBI ordered Paytm Payments Bank to stop taking new deposits or top-ups in client accounts, wallets, or FASTags after February 29. Regulation noncompliance was cited. Paytm has been reassuring users since. CEO Vijay Shekhar Sharma says the Paytm app would remain beyond February 29.
Media reported a significant rise in Google Play store downloads for Paytm’s competitors after the RBI’s action. Downloads of PhonePe, Google Pay, and NPCI’s BHIM app increased.
PhonePe saw a 45% week-over-week spike in app downloads on February 3, according to Appfigures. Compared to January 29. PhonePe’s app downloads rose 24.1% in four days after the RBI directive.
BHIM app’s rise
The NPCI BHIM app also saw a boost in downloads. Week-on-week growth was 21.5% from January 27 to February 3. Over the same four days, app downloads increased 50%.
Google Pay’s Android app downloads rose somewhat from January 27 to February 3. From January 31 to February 3, Android app downloads rose 8.4% after the RBI judgment.
Paytm’s Android app downloads fell 24% from January 27 to February 3. The brand also dropped from 18th to 40th in Google Play’s free apps category.
Conclusion
Due to regulatory violations, the RBI ordered Paytm Payments Bank to stop accepting new deposits and top-ups on February 29. However, Paytm has assured users that the app will work. Moneycontrol reported a rise in Google Play downloads for PhonePe, Google Pay, and NPCI’s BHIM app. PhonePe app downloads rose 45% and Google Pay 8.4% week-over-week.
