RBI has restricted Paytm Payment Bank from accepting new deposits, allowing credit transactions
Will customers be able to use the Paytm app after February 29? Will the Paytm wallet and other services work after February 29? These have been a few of the most asked questions ever since the Reserve Bank of India's (RBI) clampdown on Paytm Payments Bank.
The central bank on Wednesday ordered Paytm Payments Bank Ltd (PPBL or the bank), an associate of Paytm, to stop accepting fresh deposits in its accounts or digital wallets from February 29, 2024.
The RBI, which on March 10, 2022, directed PBBL to not on-board new customers, cited "persistent non-compliances" issues flagged by external auditors, and said the action was taken under section 35A of the Banking Regulation Act, 1949.
Will Paytm App Work After Feb 29?
Amid concerns over the operational status of the digital payments app, Paytm founder Vijay Shekhar Sharma on Friday reassured its users that their "favourite app" will keep working beyond February 29 "as usual".
"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," Mr Sharma said on X.
Notably, most of the services offered by Paytm are in partnership with various banks, not just its associate bank.
Can You Use PayTM Wallet After Feb 29?
Paytm wallet balances can be topped up and transferred without any restrictions after February 29.
However, this can no longer be done through the Paytm Payments Bank.
Will Paytm UPI Facility Work?
If a user's UPI address is linked to Paytm Payments Bank, transactions will be restricted after February 29.
However, customers with UPI addresses linked to other banks can continue making transactions after February 29.
Will Paytm FASTag Work?
There are a set of products that the Paytm app offers to users, some products like FASTag are already distributed by other banks and will continue to work as usual.