In an unexpected move, the Reserve Bank of India (RBI) has restricted all services provided by Paytm Payments Bank (PPBL). In fact, this restriction will take effect on February 29, 2024. So, if you have questions about what will happen to paytm after 29 february, then here we will answer this question and also give other important information.
Debit and Credit Transactions Ceased But You can Withdraw Them
After February 29, no debit or credit transactions, including those made through wallets, will be permitted. Customers, on the other hand, have complete freedom in withdrawing their funds. In short, the RBI directive emphasizes that no additional deposits or credit transactions will be permitted after the specified date.
What will happen to Paytm fund transfers, bill payments, or UPI facilities After February 29
According to the RBI, Paytm Payments Bank will no longer offer services like fund transfers, bill payments, or UPI after February 29. This means that Paytm Payment Bank users will be unable to conduct money transfers, bill payments, or UPI transactions after the specified date.
If your UPI payments are linked to a Paytm Payment Bank account, those services will be discontinued after February 29. In short, users with UPI addresses connected to any other private or public sector bank are unaffected.
Action against Paytm Payments Bank Ltd under Section 35A of the Banking Regulation Act, 1949https://t.co/bswaWHSxtk
— ReserveBankOfIndia (@RBI) January 31, 2024
What Will Happen To Paytm Sub-Wallets and Fastag
After February 29, no credit transactions or top-ups for Fastags, prepaid instruments, or other Prepaid Payment Instruments (PPI) will be accepted. In fact, this includes metro-specific NCMC cards as well as various food and fuel sub-wallets. In a nutshell, after February 28th, no more money can be added, but existing balances can be used until they are depleted.
Users who have Paytm-issued Fastags should deactivate their current tag and get a new one from another issuer. Not to mention, Paytm is the third largest player in this domain, with a sizable user base. In December of last year, Paytm processed approximately 58 million Fastag transactions.
What Will Happen To Paytm to Stock Market and Mutual Fund Services
The RBI’s order does not affect stock market or mutual fund services, which are regulated by SEBI.
What Will Happen To Paytm Loans?
Paytm loans are risk-free. After all, these loans are facilitated by third-party lenders, and borrowers must continue to make repayments.
Deposits
Paytm Payments Bank will stop accepting new deposits after February 29. Moreover, existing users can only add funds through the end of February. Similarly, insurance distribution and loans will continue to operate normally.
Paytm Payments Bank will stop accepting new users after February 29. Existing users can continue to access online payment solutions and offline services, such as Paytm’s payment gateway for online merchants. On the other hand, existing merchants will continue to have access to the offline merchant payment network.
Paytm Payments Bank Dispute and Regulatory Action
The Receiving Bank of India (RBI) announced the Paytm Wallet Ban on January 31. Significant business restrictions, such as prohibitions on accepting new credit transactions and deposits, were suggested by the RBI for Paytm payment banks. By February 29, 2024, Paytm Payments Bank is to stop accepting new users and close any nodal accounts, per an instruction from the RBI.
RBI governor Shaktikanta Das announced plans to release frequently asked questions (FAQs) documents to address concerns regarding Paytm Payments banks and other related matters raised by customers and merchants on the payment platforms during the post-monetary policy committee (MPC) meeting on February 8.
Before the FAQs were released this week, the RBI was also completed as a result of a meeting with the National Payments Corporations of India (NPCI), NHAI, and other stakeholders.
Update: Paytm Payments Bank Limited, an associate of Paytm receives RBI directions. Paytm to expand its existing relationships with leading third-party banks to distribute payments and financial services products.
Read more here: https://t.co/NsPCOxp6VJ pic.twitter.com/fQjozyR11m— Paytm (@Paytm) January 31, 2024
What This Signifies for Paytm Fastag Users
According to this, new RFID (Radio Frequency Identification) stickers are necessary for the estimated 20 million+ Paytm Fastag users. In addition, Paytm Fastags will stop working on February 29. According to reports, there are over 70 million Fastag users in India. Paytm Payments Bank claims to have a 30% market share, which translates to over 20 million users.
How to Deactivate your Paytm Fastag?
Following the NHAI’s Paytm Fastag Ban, you must deactivate your account immediately by following these steps:
1) On your smartphone, download the Paytm app, and then sign in using your current login details.
2) In the search bar, type “FASTag,” and then select “Manage FASTag” from the “Services” menu.
3) A screen with a list of all the active FASTag accounts connected to your Paytm number will appear.
4) Select “Help & Support” by swiping down to the bottom of the screen.
5) Click ‘Need help with non-order related queries?’ and choose the ‘FASTag profile updating questions’ option.
6) A “I want to close my FASTag” option ought to now appear. Toggle on it and do as directed.
Conclusion
So this is all the information about your most asked question, what will happen to PayTM? We have covered everything you need to know here in this post and our post has covered all your doubts about Paytm.
The necessity for banks to abide by the regulations is demonstrated by the Paytm Wallet Ban imposed by the NHAI, whose decision to remove Paytm Payments Bank from their list of authorized Fastag providers. However, this situation serves as a reminder to all banks that they must abide by the regulations, even though there are other banks you can use for Fastag. The market’s response to this news also demonstrates how important regulations are to maintaining fair markets and protecting banks. So, return frequently to ScoopNonstop for these kinds of recent updates.
FAQ
1- Is my Paytm money safe?
After March 15, 2024, the Reserve Bank of India (RBI) will no longer permit new deposits or credit transactions into the Paytm Payments Bank Account / Wallet. However, there are no restrictions on withdrawing money from your existing balance after March 15, 2024. Therefore, your funds are secure with the Bank, and the directive has no bearing on your current account or wallet balances.
2. Can I keep using Paytm to pay my bills and make recharges?
Yes, without a doubt! As usual, you can keep paying all of your bills and making recharges using the Paytm app. And do not worry, Paytm will still accept a variety of payment methods for your convenience.
3. Will I be able to continue booking tickets for things like travel, movies, etc?
All other services on the Paytm app remain unaffected; you can continue to use them as usual.
4. Can I still use my Card Machine, Soundbox, or Paytm QR code?
Yes. Your Paytm QR, Soundbox, and Card Machine will continue to work as usual.
5- Can I continue to use Paytm Payments Bank Wallet?
Yes, you can continue to use, withdraw, or transfer funds to another wallet or bank account until the balance in the wallet is depleted. Please keep in mind that you will be unable to make any deposits after March 15, 2024, but all refunds and cashback will continue to be credited to your wallet.
6. Can I use the Paytm Payments Bank-issued FASTag / NCMC Card?
You can use the Paytm Payments Bank FASTag / NCMC Card. However, you will be unable to recharge or add money to the account after March 15, 2024. In short, you can either use the funds or close your Paytm Payments Bank-issued FASTag / NCMC Card and request a refund.
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