- RBI has barred Paytm Payments Bank from offering key services.
- The order affects all major services like credit transactions, deposits and more.
- But how does this affect the regular Paytm app? Read to find out more.
No, Paytm won’t stop working from February 29th. This question is probably on everyone’s mind after the Reserve Bank of India announced major restrictions on Paytm Payments Bank. Yes, there are curbs on accepting deposits, doing credit transactions, and other services but Paytm users will be able to continue using the regular app for transactions.
Paytm app to work as normal from February 29th
RBI’s order restricts Paytm Payments Bank from offering key services to its customers. The order came after the central bank conducted a comprehensive audit of Paytm Payments Bank over non-compliance concerns. These restrictions only affect Paytm Payments Bank, and not the regular Paytm app so you can continue using the regular app.
For clarity, here’s a look at what’s allowed and what isn’t allowed from February 29th onwards.
What’s not allowed
- Paytm Payments Bank has been barred from offering deposits, credit transactions or top-ups in any customer account, wallets, prepaid platforms, and FASTags as well.
- No further deposits, credit transactions or top-ups will be allowed in any customer accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards.
- There are restrictions on banking services like fund transfers and UPI as well.
What’s allowed:
- Paytm Payments Bank customers can continue using the money available in their account for withdrawal. The same applies to existing balance in FASTags, wallets, savings accounts, and current accounts. This is only until February 29th though as transactions will be stopped after this date.
- There is no restriction, however, on the Unified Payments Interface (UPI) even after February 29th.
- But this is a big blow to the platform and its customers, especially businesses as it’s widely used all over the country.
The central bank has also terminated the nodal accounts of One97 Communications Ltd, the parent company of Paytm. As for transactions initiated on or before February 29th, the company will have to conclude all settlements by March 15th.
