Founder Reassures Paytm Users that App Will be Working Beyond Feb 29

Last Updated on February 2, 2024 by SPN Editor

In light of the recent directive from the Reserve Bank of India (RBI), Paytm founder Vijay Shekhar Sharma has reassured millions of Paytm users that their app will remain functional “beyond February 29”.

Sharma expressed his gratitude to Paytm users for their unwavering support, stating, “Your favourite app is working, will keep working beyond February 29 as usual. I, along with every Paytm team member, salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serving our nation in full compliance. India will continue to garner global recognition in payment innovation and financial inclusion – with PaytmKaro leading the charge.”

The RBI had issued a directive to Paytm Payments Bank (PPBL) on January 31, instructing the bank to stop accepting deposits or top-ups in any user accounts, wallets, FASTags, and other instruments after February 29. However, customers can still request a refund, cashback, or interest at any time.

The central bank’s directive was a response to ongoing serious supervisory concerns and chronic non-compliances. The RBI had immediately prohibited PPBL from accepting new clients on March 11, 2022. Despite this, the Paytm group company PPBL did not comment on the RBI’s directive against the bank.

The RBI stated, “No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. After February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime.” However, users are permitted to withdraw or use the balances from any of their accounts, including current accounts, savings bank accounts, prepaid cards, FASTags, and National Common Mobility Cards, as long as they have sufficient funds.

The directive issued by the Reserve Bank of India (RBI) to Paytm Payments Bank Limited (PPBL) will result in several changes for Paytm users:

Deposits and Transactions: Post February 29, 2024, PPBL will not be able to accept any further deposits or credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. However, any interest, cashbacks, or refunds can still be credited at any time.

Withdrawals: Paytm Users have the freedom to withdraw or use the balances from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., without any restrictions, as long as they have sufficient funds.

Services: The directive implies a halt to PPBL’s core services like Paytm Wallet, Paytm UPI, and Bill Payment Services (for Mobiles, Electricity, DTH) etc., effective from February 29, 2024. From March 1, 2024, PPBL will only be able to offer merchant services on its app.

Pipeline Transactions: PPBL has been directed to settle all pipeline transactions and nodal accounts by March 15, 2024, with no further transactions allowed thereafter.

Despite these modifications, PPBL has assured Paytm users that the directive will not affect user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts. Users can continue to use the existing balances.