Paytm: Clearing the air around the operability of Paytm wallet, Paytm CEO Vijay Shekhar Sharma on Friday clarified Paytm’s app will “keep working beyond 29 February as usual.”
On January 31, the Reserve Bank of India (RBI) imposed curbs on the business activities of Paytm Payments Bank asking it to stop all banking activities by the end of February.
To be specific, the RBI barred Paytm Payments Bank Limited, an associate of One 97 Communications Limited, from taking further deposits or undertaking credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards, after February 29.
However, it will be allowed to credit any interest, cashbacks, or refunds into these accounts at any time, and customers are also free to withdraw or use their balances in these accounts without restrictions.
Paytm CEO Vijay Shekhar Sharma, in a post on X, said: “To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. 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. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it.”
Here are the details on customer accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards:
PayTM Wallet balance
After February 29, Paytm wallet balances can still be topped up and transferred. However, this can no longer be done through Paytm Payments Bank. Users are still able to add funds and use their existing balances for bill payments.
In a regulatory filing, Paytm said: “OCL, as a payments company, works with various banks (not just Paytm Payments Bank), on various payments products. OCL started to work with other banks since starting of the embargo. “We now will accelerate the plans and completely move to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. The next phase of OCL’s journey is to continue to expand its payments and financial services business, only in partnerships with other banks.” PayTM FASTags
Users with Paytm FASTags need not worry as the Paytm FASTag, which is connected to the Paytm wallet, will continue to function. Wallet transactions will still be allowed even after February 29.
Paytm UPI
RBI has said that after February 29, Paytm Payments Bank should not offer services like fund transfers, bill payments, or UPI facilities. This means Paytm Payment Bank users won’t be able to make any money transfers, bill payments, or UPI transactions through Paytm Bank after the specified date.
If your UPI address is linked to Paytm Payments Bank, transactions are restricted post-February 29. Users with UPI addresses linked to other banks can continue transactions beyond February 29 as usual.
Stock trading
The RBI’s directive does not mention stock trading and the Paytm Money app. As the services are regulated by SEBI, the impact of the RBI’s order on the sale and purchase of stocks and mutual funds via the Paytm Money app remains as is for now.
Loans Taken Through Paytm
Loans obtained through Paytm do not carry any risk. These loans are provided by third-party lenders, and borrowers must continue to make their repayments.
Deposits
Paytm Payments Bank will not accept new deposits after February 29. Existing users can only add funds until the end of February. Services like insurance distribution and loans will not be affected.
Also read: Paytm will keep working beyond Feb 29: Vijay Shekhar Sharma allays user fear
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