Paytm CEO Vijay Shekhar Sharma said on Friday that the Paytm app will "keep working beyond 29 February as usual," clearing up any confusion over the functionality of the Paytm wallet.
The Reserve Bank of India (RBI) placed restrictions on Paytm Payments Bank's commercial operations on January 31 and demanded that it cease all banking operations by the end of February.
In particular, after February 29, the RBI prohibited Paytm Payments Bank Limited, a One 97 Communications Limited associate, from accepting new deposits or carrying out credit transactions or top-ups in any customer accounts, prepaid devices, wallets, FASTags, or National Common Mobility Cards.
Customers may withdraw or use their balances in these accounts without any limitations, and any interest, cashbacks, or refunds may be credited to these accounts at any time.
"To every Paytmer, Your favorite app is working, will keep working beyond 29 February as usual," stated Paytm CEO Vijay Shekhar Sharma in a post on X. “I, along with the entire Paytm team, thank you for your unwavering support. There is always a solution to a problem, and we genuinely want to serve our country to the best of our abilities. India will continue to lead the world in payment innovation and financial services inclusion, and PaytmKaro is leading the way in this regard," he added.
The following information relates to wallets, prepaid cards, FASTags, National Common Mobility Cards, and customer accounts:
PayTM Wallet Amount
Paytm wallet balances can still be added up and transferred after February 29. But Paytm Payments Bank is no longer the method for doing this. It is still possible for users to contribute money and pay bills with their current balances.
Paytm stated in a regulatory filing: "OCL, a payments company, works on a variety of payment products with a number of banks, not just Paytm Payments Bank. Since the embargo began, OCL has begun collaborating with other banks.We will now expedite the plans and switch over entirely to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. OCL's next step is to keep growing its financial services and payments business, but only in collaboration with other banks."
FASTags for PayTM
Paytm FASTag owners don't need to worry; their device, which is linked to the Paytm wallet, will keep working. After February 29, wallet transactions will still be permitted.
Paytm UPI
According to the RBI, Paytm Payments Bank is not allowed to provide UPI features, fund transfers, or bill payments after February 29. This implies that after the designated date, users of Paytm Payment Bank will not be allowed to use Paytm Bank for any bill payments, money transfers, or UPI activities.
Transactions are blocked after February 29 if your Paytm Payments Bank UPI address is connected to it. After February 29, users who have linked their UPI addresses to other banks can continue transacting as usual.
Trading Stocks
The Paytm Money app and stock trading are not mentioned in the RBI's directive. The effect of the RBI's order on the selling and purchase of stocks and mutual funds through the Paytm Money app is now unchanged because the services are governed by SEBI.
Loans Obtained Using PayTM
Payday loans made with Paytm are risk-free. Borrowers are required to continue making their repayments on these loans, which are supplied by third-party lenders.
Refunds
After February 29, Paytm Payments Bank will no longer take new deposits. Only monies added by current users are allowed till the end of February. Loans and insurance distribution services won't be impacted.
