Paytm Payments Bank Leads In Customer Complaint Among Payments Banks

Paytm Payments Bank (PPBL) has emerged as the leader in customer complaints among payment banks for the financial year 2022-23, according to data provided by the Reserve Bank of India (RBI).

What Happened: With a staggering 3,513 grievances, Paytm accounted for over 62% of the total 5,623 complaints directed at all payment banks. This high volume of complaints comes at a precarious time for PPBL, which is on the brink of possibly losing its license after March 15.

The RBI’s annual report highlights that Airtel Payments Bank and India Post Payments Bank trailed behind PPBL with 1,370 and 364 complaints, respectively. Notably, in terms of complaints per branch, Paytm led significantly with 501.86 complaints, a figure that starkly contrasts with its peers.

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The scenario isn’t rosier in other banking categories. Among small finance banks, AU Small Finance Bank topped the list with 899 complaints. Meanwhile, the State Bank of India (SBI) bore the brunt of public dissatisfaction in the public sector, with an overwhelming 40,345 complaints. In the private sector, ICICI Bank received the highest number of complaints at 16,602.

January 2024 saw the RBI impose stringent restrictions on PPBL, halting its customer onboarding and certain transactions, a move that led to a sharp decline in Paytm’s stock value. This dire situation prompted Paytm’s Vijay Shekhar Sharma to step down from his role at PPBL and initiate a restructuring of company governance.

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