To streamline operations, Paytm is steering away from non-core businesses and focusing on reducing employee costs. This includes reviewing its involvement in areas such as cross-border business and software as a service (SaaS) to banks.

Amid ongoing restructuring, Paytm witnesses senior-level exits including Ajay Vikram Singh and Bipin Kaul. The company aims to strengthen leadership with changes in key roles including Bhavesh Gupta transitioning to an advisory position. Rakesh Singh becomes CEO of Paytm Money Ltd, while Varun Sridhar leads Paytm Services Pvt Ltd.

The resignation follows Paytm Payments Bank's recent suspension of basic banking services, which was implemented nearly a month ago under directives from the RBI. Amidst these developments, Paytm has severed all ties with PPBL, as disclosed to the exchanges.

In its "Economic Outlook Asia-Pacific report," S&P Global highlighted several factors expected to influence India's economic trajectory in the coming year. Among these factors are anticipated higher interest rates, a crackdown on unsecured lending, and efforts to reduce the fiscal deficit.

Analysts from prominent brokerage firms like UBS and Jefferies weighed in on the implications of the third-party app provider license for Paytm. UBS suggested that Paytm would now operate similarly to its competitors like Google Pay and PhonePe, while Jefferies highlighted the potential necessity for Paytm to tap into its cash reserves to retain customers and merchants, which are pegged at 85 billion rupees ($1.02 billion).

The RBI has instructed PPBL to halt all deposits, credit transactions, and top-ups in customer accounts by March 15, impacting 30 crore wallets and 3 crore bank customers. Additionally, NPCI has sanctioned One97 Communications Limited (OCL) to operate as a Third-Party Application Provider (TPAP) within a multi-bank framework.

Paytm FASTag users will no longer have the option to recharge or top-up their balances post the specified cutoff date. However, they can continue utilizing their existing balance to facilitate toll payments beyond March 15.

In fresh trouble for Paytm Payments Bank, the Financial Intelligence Unit (FIU) has slapped a penalty of Rs 5.49 crore on the payments bank for violating anti-money laundering law, the finance ministry said on Friday.