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After the announcement of Paytm Payment Bank Limited (PPBL) restrictions by RBI on Wednesday, probably the question in the mind of all Paytm users is whether Paytm will be closed after 29th February next month. But, let us tell you that the answer is no. But, it will not be able to accept deposits or top-ups into any customer accounts, prepaid instruments, wallets and Fastag after February 29, 2024. Actually, this action of the Reserve Bank against Paytm Payments Bank Limited (PPBL) has been taken after a comprehensive system audit report and compliance verification report prepared by external auditors.
In this article:
Paytm app will work normally from February 29
The RBI order restricts Paytm Payments Bank from providing key services to its customers. The order comes after the central bank conducted a comprehensive audit of Paytm Payments Bank over non-compliance concerns. These restrictions only affect Paytm Payments Bank and not the regular Paytm app, so you can continue using the regular app. The RBI said in a statement that these reports reveal persistent disregard for rules at the bank and hence further action is required.
What will not work on Paytm
- Paytm Payments Bank is barred from offering deposits, credit transactions or top-ups to any customer account, wallet, prepaid platform and Fastag.
- No further deposits, credit transactions or top-ups will be allowed in any customer account, prepaid device, wallet, Fastag or National Common Mobility Card.
- There are also restrictions on banking services like fund transfer and UPI.
What will work on Paytm
- Paytm Payments Bank customers can continue to use the money available in their account for withdrawals. The same applies to existing balance in Fastag, wallet, savings account and current account. However this is only till 29th February as transactions will be closed after this date.
- However, even after February 29, there is no ban on Unified Payment Interface (UPI).
- But this is a major blow to the platform and its customers, especially businesses as it is widely used across the country.
The central bank has also frozen the nodal account of Paytm's parent company One97 Communications Limited. As far as transactions initiated on or before February 29 are concerned, the company will have to complete its transactions by March 15.
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