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02 Feb, 2024 | Friday
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Paytm RBI saga shouldn't worry you, Vijay Shekhar Sharma responds

As Paytm Payments Bank will cease to accept deposits from next month following orders from RBI, a lot of confusion has transpired among users.

Edited By: Shubham Verma

Published: Feb 02, 2024, 02:57 PM IST

Paytm's Vijay Shekhar Sharma has said the app will continue to work after February 29.
Paytm's Vijay Shekhar Sharma has said the app will continue to work after February 29.

Paytm’s associate bank, called Paytm Payments Bank, recently received the Reserve Bank of India’s (RBI) directions in response to which Paytm’s Founder and CEO Vijay Shekhar Sharma assured users that the Paytm app will continue to work beyond February 29. Clearing the air around whether Paytm will cease to exist beyond this month, Sharma has offered assurance to existing users that their accounts and money will be safe.

In a tweet, Vijay Shekhar Sharma said: “To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I, with every Paytm team member, salute you for your relentless support. In his tweet, he also added, “For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it.”

RBI issued an order, stating that Paytm Payments Bank must stop accepting deposits or facilitating any credit after February 29 for violating policies. The payments bank will also be blocking top-ups, customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards (NCMC), etc.

Following the RBI’s directive, Paytm customers need not worry as it has said that the app is up and running. Paytm and its services continue to remain operational beyond February 29, as most of the services offered by Paytm are in partnership with various banks (not just the associate bank). Paytm has been informed that this does not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances.

The recent RBI directives on Paytm’s associate bank won’t affect Paytm Money Ltd’s (PML) operations or customers’ investments in Equity, Mutual Funds, or NPS. Paytm’s other financial services such as loan distribution, and insurance distribution are not in any way related to its associate Bank and will continue to work as usual. Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, and Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well.

Mobile recharges, subscriptions and other recurring payments on the Paytm app will continue to operate smoothly.

— Written with inputs from IANS

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Author Name | Shubham Verma

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