Paytm has issued a response to the recent directive from the Reserve Bank of India, which entails a set of limitations on the company’s diverse range of services. This directive will have an impact on Paytm Wallets, Paytm FASTags, fund transfers, and other associated functionalities. Let us now explore the implications of these restrictions on you.
Paytm Payments Bank received a set of restrictions from the Reserve Bank of India on January 31 due to persistent non-compliances and ongoing supervisory concerns. According to the central bank’s press release, these restrictions may impact various services such as Paytm Wallets, Paytm FASTags, money transfers, and credit transactions starting from February 29. However, existing users and their balance amounts with Paytm Payments Bank will remain unaffected. Paytm has now issued an official statement in response to the RBI’s order. The company has stated that it is taking immediate action to comply with the RBI’s directions and is actively working with the RBI to address their concerns as quickly as possible. This statement provides an overview of Paytm’s response and how it will impact existing users.
Paytm explains the RBI order
Paytm has clarified that the recent decision made by the Reserve Bank of India will not have any impact on the funds or balance that users have in their savings accounts, Paytm Wallets, Paytm FASTags, or mobility/transit cards. Users can continue to utilize their balance even after February 29.
Furthermore, Paytm has assured that it will continue to provide payment services to existing business owners and merchants in India. The company stated in a press release that its offline merchant payment network offerings, such as Paytm QR, Paytm Soundbox, and Paytm Card Machine, will function as usual. Paytm can also onboard new offline merchants as part of its services.
In addition, Paytm announced that its parent company, One 97 Communications, intends to shift its operations to other bank partners and will no longer collaborate with Paytm Payments Bank, which has been restricted by the central bank. The press release stated that One 97 Communications will solely work with other banks in the future. The company’s focus will be on expanding its payments and financial services business through partnerships with other banks.
Paytm also highlighted that it currently offers acquiring services to merchants in collaboration with multiple banks in India and plans to further expand its partnerships with third-party banks. Additionally, One 97 Communications will explore partnerships with various other banks to offer a wide range of payment products to its customers.
How are the existing Paytm users affected?
After February 29, users of Paytm Payments Banks will no longer be able to perform various operations including credit usage, deposits, fund transfers, UPI transactions, FASTag toll payments, bill payments, and wallet usage. Nevertheless, they will retain the ability to withdraw their existing balance, claim cashbacks and refunds, and utilize any remaining funds in their savings accounts, Paytm Wallets, FASTags, or transit card services. It is worth mentioning that no further funds can be added to these accounts and services after February 29.