Paytm Wallet Vijay Shekhar Sharma, founder of Paytm Wallet, wrote in X that the RBI directives will only affect the Paytm Payments Bank and not the Paytm application.
Many customers are concerned about the QR payment app’s functionality after February 29 due to RBI’s crackdown on Paytm Payments Bank.
Paytm’s founder Vijay Shekhar Sharma addressed these concerns by reassuring that the app would continue functioning even if Paytm Payments Bank closed.
“To all Payers, Your favourite app will continue to work as usual beyond February 29. Paytm and I salute your unwavering support. We are committed to serving our nation with full compliance.
For every problem, there’s a solution. India will continue to win global accolades for payment innovation and financial inclusion – PaytmKaro being the biggest champion,” he said.
Madhur Deora (President and Group CFO of Paytm) clarified the issue earlier. He said that Paytm Payments Bank and Paytm cannot be treated as one entity and do not have any impact on each other.
Paytm Payment Bank and Paytm may appear to be one entity, but they are not. It is both an associate and a bank. First and foremost, a Bank must follow the governance rules expected of a Bank.
This means that it needs to have an independent management team that reports to the Board and that the committees that deal with the issues can only consist of independent directors,” Deora stated earlier.
In its filings on the stock exchange, the Board of Paytm Payments Bank also stated that it is managed independently by its Board and management.
RBI’s Directive To Paytm Payment Bank
RBI is considering the cancellation of the operating licensee for Paytm Payments Bank, Paytm’s associated Bank. Once depositors’ money has been safeguarded, RBI will consider cancelling the operating licence. The banking regulator is likely to do the same by February 29.
Paytm Payments Bank has announced that after February 29, customers will not be able to replenish their digital wallets or savings accounts. The RBI has yet to decide on the issue.
RBI has issued a directive to Paytm Payments Bank, citing violations such as non-disclosure and misuse of customer documentation rules. The RBI claims that thousands of Paytm users have yet to submit their KYC documents. This raises money laundering concerns.
What Is Not Permitted
After February 29, 2024, no deposits, credit transactions, or top-ups are permitted on any customer account, prepaid card, wallet, FASTags, or NCMC cards.
The RBI circular dated January 30, 2024, states that “banks will provide no other banking services other than the ones mentioned above after February 29, 2024.”
This includes fund transfers, regardless of their name or nature, such as AEPS, IMPS, etc. The RBI circular dated January 30, 2024, states that “no other banking services, except those referred to above (fund transfers), are allowed after February 29, 2020.”
What Is Allowed?
Only interest, cashback, or refunds can be credited to your account anytime. The sender can use the app anytime to withdraw or transfer money from his account or wallet.
Who Will Be Affected?
According to the RBI circular, February 29, 2024.
- Customers can use any balance in the account.
- Savings bank accounts, current accounts, prepaid cards, and FASTags are all available.
- National Common Mobility Cards and other accounts without any
- limitations.
- One97 Communications Ltd. and Paytm Payments Nodal accounts
- Services Ltd. must be terminated as soon as possible, but in no case later than
Transactions That Are Initiated Before Or On February 29, 2024
All transactions in the pipeline and nodal account (for transactions that began on or Before February 29, 2024), must be settled no later than March 15, 2024. After that date, transactions will no longer be authorised.
What Should Paytm Users Do?
Customers of Paytm should first use their balance before buying a new one. Our conference call regarding RBI directives to Paytm Payments Bank. Paytm is an affiliate of Paytm.
“In offline versions where you see Our All-in-1 QR powered by Paytm Payments Bank will now need to change QR to any other sponsored bank.
This will be an extensive exercise. The new acquisition will start immediately. President and Chief Operating Officer (COO) Bhavesh Bhavesh says, “We will be ready in a few weeks.”
We have worked with many partners. Equity and Insurance are They do it independently. Lending is not connected to Bhavesh Gupta, President and CEO of Paytm Payments Bank, has announced the launch.
Paytm offers several products to its users. “We will continue to distribute FASTags, which are currently distributed by other banks,” says Bhavesh Gupta is the President and Chief Operating Officer of Bhavesh Gupta.
Paytm Users Need To Know Some Important Paytm FAQs
What Happens To The Prepaid Instruments, FASTags, NCMC Transit Cards, etc? What happens to Prepaid instruments, FASTag, NCMC Transit Cards, Etc., Issued By The Bank
You can use, withdraw, or Transferred, as required, without restrictions. Any top-up is allowed. Additional credit to these accounts is only permitted until February 29, 2024.
Does the RBI’s Decision Impact PayTM or UPI Channels Through PayTM?
No. The public and the UPI can use the Paytm app. The app allows you to stream the channel without restrictions (the parent company owns the app). Paytm Payments Bank is not the company that pays for this service.
What happens when the PayTM App Or Wallet Of The Sender Is Linked To A PayTM Payments Bank Account?
The sender can continue to withdraw funds or use the app for transfers from His wallet or account can be accessed at any time without restriction.
What Happens If A Beneficiary’s PayTM App Or Wallet Is Linked To A PayTM Payments Bank account?
The credit can be continued to the beneficiary until February 29, 2024. The beneficiary can only withdraw or transfer money from his wallet afterward.
No credit or top-ups to Paytm Payments Bank account or wallet. Paytm Payments Bank accounts and wallets do not accept any credit or top-ups. From March 1, 2024, you can start using the new system.
What Happens To The Prepaid Instruments, FASTags, NCMC Transit cards, etc? What Happens To Prepaid instruments, FASTag, NCMC transit cards, etc., Issued By The Bank
You can use, withdraw, or Transferred, if necessary, without restrictions. Any top-up is allowed. Additional credit to these accounts is only permitted until February 29, 2024.
What Is The Current Status Of The RBI’s March 11, 2022, Action That Barred PayTM Payments Bank from Onboarding New Clients?
The business restrictions imposed on March 11, 2022, continue to be in effect The action announced for January 31, 2024, goes beyond this.
Is The Action Of RBI Effective Immediately?
RBI has banned any additional credit or top-ups to PayTM Payments in a bank account or wallet will be available after February 29, 2024. From March 1, 2024.
SEE ALSO: Poonam Pandey Can Be Arrested After Their Fake Death Drama, Know Here Complete News
1 thought on “What Paytm Wallet Will Not Work After 29 Feb, What are Real RBI Guidelines? See Here”