In India, 42% of Indian Kirana Retailers have already begun utilizing other mobile payment apps since the Reserve Bank of India (RBI) issued limits on the Paytm Payments Bank on January 31, according to a poll released on Thursday. An additional 20% of respondents stated they planned to utilize different payment apps, it was reported.
Following the RBI announcement, it was reported that there is a 68% decline in customer trust in Paytm, according to a Kirana Club study with 5,000 participants.
"While the ban imposed by the regulatory authority might lead to disruption at Kirana stores, they are not much worried because there are alternate payment options available," stated Anshul Gupta, founder and CEO of Kirana Club.
Another startling conclusion about local shops' perceptions of Paytm's trust was also uncovered by the poll. It shows that following RBI regulations, 68% of Indian kiranas have less faith in Paytm," the statement read.
According to the poll, most retailers - 50% of them - selected PhonePe out of the payment apps they have started using or want to use. Thirty percent goes towards Google Pay and ten percent goes towards BharatPe. The Reserve Bank of India placed limits on Paytm Payments Bank on January 31 and announced that it will no longer be accepting new deposits as of February 29.
During the press conference held on Thursday following the monetary policy committee meeting, RBI Governor Shaktikanta Das stated that the action taken against Paytm Payments Bank was a result of compliance concerns rather than regulatory violations.
The RBI's deputy governor, Swaminathan J., stated that the decision was made only after multiple bilateral talks between Paytm and the RBI. It has no effect on the Paytm app, he continued.
