The Confederation of All India Traders (CAIT) on Sunday urged traders using Paytm to migrate to other apps days after the RBI order the company's banking arm Paytm Payments Bank Ltd (PPBL) to halt services from February 29 over alleged irregularities.
In a statement, CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal said the RBI's recent restrictions on Paytm have raised concerns about security and continuity of financial services provided by the platform.
"Our advisory is a precautionary measure to protect the financial interests of traders in light of recent developments. We encourage users to stay informed and take proactive steps to ensure the security of their funds," the officials of the trade body stated.
"The RBI has imposed certain restrictions, prompting CAIT to recommend that users take proactive measures to protect their funds and ensure uninterrupted financial transactions. Large number of small traders, vendors, hawkers and women are making payments through Paytm and as such RBI restrictions on Paytm could lead to financial disruptions for these people," the CAIT said.
This comes after the central bank ordered PPBL to stop accepting further deposits or top-ups on customer accounts, wallets, FASTags and prepaid instruments as well as conducting further credit transactions after February 29.
However, customers can access their existing deposits and pay for services with money stored in their wallets till February 29.
Following this the shares of One97 Communications Ltd, which owns Paytm brand, plunged 40 per cent in the first two days of February.
A Paytm spokesperson said, "One 97 Communications Ltd. and Paytm Payments Bank have never been probed by the Enforcement Directorate. Some merchants using our platforms have been the subject of investigations and we answer authorities on this same as and when asked. We strongly refute money laundering allegations and caution you against speculation."
