Explained: Following RBI curbs, will Paytm app, its wallet and UPI services work after February 29?
The Reserve Bank of India's (RBI) recent clampdown on Paytm Payments Bank Ltd (PPBL) has left users with numerous questions about the continuity of services offered by the popular digital payments platform.
FollowOne of the most frequently asked questions following the Reserve Bank of India's (RBI) restrictions on Paytm Payments Bank concerns the usability of the Paytm app and its services beyond February 29. In response to the RBI's directive, Paytm Payments Bank Ltd (PPBL) has been instructed to cease accepting new deposits into its accounts or digital wallets starting February 29, 2024.
The RBI's decision, prompted by ongoing non-compliance issues highlighted by external auditors, builds upon its earlier directive issued on March 10, 2022, which prohibited PPBL from onboarding new customers. This regulatory action is executed under section 35A of the Banking Regulation Act, 1949. As a result, customers are eager to know if they can continue using the Paytm app and if services like the Paytm wallet will remain functional beyond the specified date.
Here's a breakdown of what users can expect regarding Paytm's functionality after February 29, 2024:
Will Paytm work after February 29?
The RBI's directive to PPBL restricts the acceptance of new deposits into its accounts or digital wallets starting February 29, 2024. Despite this, Paytm founder Vijay Shekhar Sharma has reassured users that the app will continue to operate normally beyond the specified date. This assurance is backed by Paytm's commitment to finding solutions to challenges while remaining compliant with regulations.
"To every Paytmer... I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance," Sharma said on X.
It's noteworthy that the majority of services provided by Paytm are in collaboration with various banks, not solely reliant on its associate bank.
Can you use Paytm wallet after February 29?
After February 29, users can still top up and transfer balances in their Paytm wallets without any limitations. However, it's important to note that these transactions can no longer be facilitated through the Paytm Payments Bank.
Will Paytm UPI facility work?
Following February 29, transactions via the Paytm UPI facility will be subject to restrictions if a user's UPI address is linked to Paytm Payments Bank. Nonetheless, customers with UPI addresses linked to other banks can proceed with transactions as usual beyond the specified date.
Also read:Â RBI's action on Paytm payments bank: Here's what Paytm wants users to know
Will Paytm FASTag work?
FASTag, among the products offered by the Paytm app, is already distributed by other banks and will continue to function normally without disruption.
In conclusion, while the RBI's regulatory actions have prompted adjustments within Paytm's operations, users can rest assured that the platform remains committed to serving its customers effectively. By understanding the implications of the RBI's directives and Paytm's response, users can navigate any potential disruptions with confidence in the platform's continued reliability and compliance.
