The Reserve Bank of India (RBI) has barred Paytm Payments Bank from most operations, including taking deposits and fund transfers with effect from March 1, 2024.
The curbs on the bank come amid several alleged failures such as violations of know-your-customer (KYC) norms.
Under such a scenario, here’s what works for customers using Paytm Payments Bank, according to the company.
What happens to my savings account or deposits in the Paytm Payments Bank account?
The deposits of Paytm Payments Bank users in their savings accounts, FASTags, National Common Mobility Card (NCMC) accounts and wallets are secure.
Users will be able to use the existing balance in their accounts.
How about fresh deposits to my account in Paytm Payments Bank?
According to the RBI, no further deposits, credit transactions, or top ups will be allowed in any customer account, prepaid instruments, wallets, FASTags and NCMC cards, after February 29, 2024.
The exceptions are any interest, cashbacks, or refunds which may be credited anytime.
Which are the services that are live on the Paytm app?
Users on the Paytm app will be able to use UPI services, recharge, pay bills as well as use Paytm QR, Soundbox, card machine, movie bookings, and financial services.
What next for Paytm and Paytm Payments Bank?
Paytm works with various banks (not just its associate bank), on many payment products.
It started its journey of working with other banks over the last two years, and this will now accelerate further.
The next phase of Paytm’s journey is to continue expanding its payments and financial services business, only in partnership with other banks, the company said.
