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RBI Paytm FAQ: On January 31, 2024, the Reserve Bank of India took major action and announced the order to shut down the banking services of Paytm. RBI on January 31 said that regulatory action has been taken against Paytm Payments Bank regarding transactions in Paytm Payments Bank account. Services like Paytm Wallet, Fastag and Topup will be stopped. The Reserve Bank of India has given a big relief to Paytm and given a relaxation of 15 days. Now the ban on Paytm Payments Bank will not be applicable from February 29, but it has been extended by 15 days to March 15. That means transactions can be done in Paytm wallet, Fastag and customer accounts till March 15, 2024.
RBI issues FAQ for public
To remove fear from the minds of users after the action against Paytm, Reserve Bank of India has issued a FAQ to answer all the questions of the common people related to Paytm. Apart from this, it has also tried to answer the questions of people who pay through Paytm for everything from Fastag to electricity bills and loan EMIs.
Regarding salary account
If your salary has been credited to your PPBL account, you will not be able to receive it after March 15. RBI has suggested that such people should transfer their salary account to another account from March 15.
Regarding light or OTT bill
If you are paying light bill or OTT bill through payment bank, then such people will keep using it till the balance is available. But after March 15, credit and deposits will not be allowed.
Regarding loan EMI payment
Regarding loan EMI payment, the Reserve Bank said that the auto-debit order will continue till the account balance is exhausted. However, the accounts will be closed after March 15. But EMIs registered with any bank other than Paytm Payments Bank can continue.
Regarding Fastag
Customers can use their Paytm-issued Fastag to pay toll till the balance available in their payment bank is met. No additional funds or top-up will be allowed after March 15, 2024. Credit balance transfer facility is not available in Fastag. Therefore, customers will have to close their old Paytm FASTag and apply for a refund from the bank.
For PPBL Customers
PPBL customers can withdraw funds into PPBL accounts subject to the existing deposit balance limit (Rs 2 lakh per individual customer) with partner banks, but after March 15, 2024, no fresh funds will be accepted by PPBL partner banks.
Before taking this strict step, RBI had barred PPBL from adding new customers till March 2022. One97 Communications, the parent company of the Paytm brand, has a 49 per cent stake in PPBL, but Paytm calls it an associate and not a subsidiary.
Warning to shopkeepers taking payment
Customers with PPBL wallet can continue to use it even after March 15, as long as funds are available in the wallet. The Reserve Bank has also warned buyers who make payments through Paytm QR code, Paytm Soundbox, Paytm POS terminal linked to PPBL account or wallet that they will not be able to avail this service after March 15. Therefore they should look for other options.
What statement came from Paytm?
Meanwhile, Paytm Founder and CEO Vijay Shekhar Sharma said in a post on the social media platform, 'Paytm QR, Paytm Soundbox and EDC (Card Machine) will continue to function normally even after March 15… Don't get misled. Be it rumors or misconceptions… no one can stop you from advocating for Digital India!'