Recently, RBI has charged a commercial ban on Paytm Payments Bank due to continuous non-compliance. Also Paytm and its customers will be greatly affected.
RBI Action on Paytm
RBI ban on Paytm Payment Bank. Paytm Payments Bank will be restricted from accepting deposits or taking credit transactions, top-ups and other banking services from February 29, 2024. This includes prepaid devices, wallets, FASTags and National Common Mobility Card (NCMC). However, customers will still be able to withdraw from their accounts and access their balance. RBI has also ordered the closure of nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd before February 29, 2024.
Paytm Payment Bank Customer Queries
Q1. What action has been taken on Paytm payments?
Ans. Paytm Payments Bank banned by Reserve Bank. Prepaid wallets and Fastags unusable for Paytm customers from February 29, 2024.
Q2. I have Paytm app, will my app be stopped?
Ans. If you have the Paytm app and you are not using the services of Paytm Payments Bank, you need not worry about your decision. You can continue to perform all your activities as before, such as paying bills like mobile recharges, water and electricity bills using UPI from your bank account, such as SBI or HDFC.
Q3. Who will be affected by Paytm?
Ans. Paytm provides other types of services including loans by partnering with many banks. One of these is Paytm Payments Bank. After the decision of RBI, now Paytm Payments Bank service will be banned. This ban will be effective after February 29. That means if you want to pay any kind of bill with the money deposited in Paytm Payments Bank, then it will not be possible.
Q4. What will be the impact on Paytm POS and Paytm Soundbox service?
Ans. Paytm has confirmed that there will be no impact on your Paytm POS and Paytm Soundbox services. Paytm has said that we will be able to add new offline merchants in future as well.
Q5. Will Paytm merchants be able to take payments from Paytm?
Ans. Paytm merchants with accounts in Paytm Payment Bank can not receive new credit and accept payments due to RBI decision.
Q6. What will happen to Paytm FASTag?
Ans. You can continue using your existing Paytm FASTag balance, but it will become inactive after February 29th. Paytm Fastag users should purchase a new tag..
Q7. What will happen to the Paytm loan?
Ans. Those who have taken loans from Paytm must continue to make payments. These loans are provided by third-party lenders. Any default or delay in making instalments will affect their credit score.
Conclusion
RBI’s action reminds banks to prioritize regulatory compliance for banking sector stability.
