As the Reserve Bank of India (RBI) takes supervisory action on Paytm Payments Bank, active users need to be aware of the implications set as on January 31, 2024. Let’s get into the key details that every Paytm user should know about the recent developments in pointers – 10 Facts PayTM Customer Should Know about RBI’s Action on PayTM
2024 RBI Directive on PayTM
- On Wednesday January 31,2024, the RBI directed Paytm Payments Bank to cease onboarding new customers.
- Further deposits or credit transactions are restricted after February 29, 2024.
How PayTM Customers Will be Affected?
- After February 29, 2024, no new deposits, credit transactions, or top-ups are allowed in customer accounts, wallets, FASTags, NCMC cards, etc.
- However, interest, cashbacks, or refunds may still be credited anytime.
Balances and Withdrawals:
- Customers can withdraw or utilize their existing balances without any restrictions.
- This applies to various services, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards.
Restricted Banking Services on Paytm Payments Bank:
After February 29, 2024, Paytm Payments Bank won’t provide certain banking services, such as fund transfers (AEPS, IMPS, etc.), BBPOU, and UPI facility. While customers can use PayTM UPI if linked with other banks.
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Impact on Paytm Payments Bank
As a result of the RBI action, Paytm Payments Bank will face limitations. Notably, it won’t be able to accept deposits exceeding ₹2 lakh per account after February 29. Additionally, credit transactions, including those through wallets, will be restricted. This means the bank won’t be able to provide loan disbursements to customers via accounts or wallets.
Termination of Nodal Accounts:
- The RBI has instructed the termination of the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd.
- This termination is to be completed at the earliest, but not later than February 29, 2024.
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Pipeline Transactions:
- Settlement of all pipeline transactions and nodal accounts initiated on or before February 29, 2024, should be completed by March 15, 2024.
- No further transactions shall be permitted thereafter.
FASTag Restrictions:
- Prior to RBI’s action, Indian Highways Management Company had already barred Paytm Payments Bank from issuing fresh FASTags due to non-compliance with the prescribed parameters.
What Industry Experts are Saying about RBI’s Action on Paytm:
- Gaurav Goel, Founder-Director of Fynocrat Technologies, highlighted the RBI’s measures against Paytm Payments Bank, restricting its deposit and top-up capabilities.
- The central bank cited ongoing non-compliance and supervisory concerns, raising questions about the bank’s operational integrity.
- While this may impact existing customers, the full implications are yet to be clarified by the company.
- This development is expected to influence Paytm’s short to medium-term stock prices.
While services linked to Paytm’s wallet application and UPI services linked to other banks may remain unaffected post RBI’s action on Paytm, users with payments bank accounts should be mindful of these limitations. Stay informed, and be aware of how these changes might impact your Paytm banking experience.
