- Paytm Payments Bank won’t be able to offer key services from February 29th onwards.
- The RBI has prohibited several facilities including deposits, credit transactions, and more.
- The app isn’t shutting down though and there’s still time to make use of your Paytm Payments Bank balance.
The Reserve Bank of India announced major restrictions on Paytm Payments Bank making most of its key services unavailable after February 29th. The order prevents Paytm Payments Bank from accepting deposits, allowing credit transactions, funds transfer, and more. Starting today, there’s less than a month until Paytm’s banking services are available for customers.
If you’re one of the many Paytm customers who probably has several questions, here’s all you need to know.
What happens to your Paytm money?
- The RBI order is effective only from February 29th so until then all Paytm services will work as usual. But it’s important to know that during this time you should withdraw or use the remaining amount in your Paytm account.
- So you can continue using your available balance for all the services available on Paytm Payments Bank. This includes savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, and more.
- Unified Payments Interface or UPI will continue to work on Paytm even after February 29th. So this would be the only key banking service available on the app.
The RBI order comes after the central bank ordered a comprehensive audit of Paytm Payments Bank over non-compliance concerns. The nodal accounts of One97 Communications Ltd, the parent company of Paytm, have been terminated as well. The company also has to conclude all settlements for transactions initiated on or before February 29th, by March 15th.
This move will be a big blow to not just Paytm but customers, and businesses as its services are widely used everywhere in India. But this might just be good news for rivals like PhonePe, Airtel Payments Bank, and Google Pay.
