New Delhi: In accordance with Section 35A of the Banking Regulation Act of 1949, the Reserve Bank of India has directed Paytm Payments Bank Ltd. (PPBL) to cease the registration of new customers promptly. As of February 29, 2024, various transactions like deposits, credit operations, top-ups, and withdrawals will be restricted in customer accounts, prepaid cards, wallets, FASTags, NCMC cards, and similar services.
Paytm has released detailed information about the operational status of its services post the regulatory directive on its application. While Paytm customers can still utilize UPI for payments beyond February 29, 2024, it's crucial to note that this regulatory measure does not impact user deposits in savings accounts, wallets, FASTags, and NCMC accounts. Users can continue to access their existing balances in these accounts.
Despite the suspension on certain services, users can freely utilize the UPI channel and the PayTM app, as PayTM Payments Bank operates independently and is not directly linked to the app; it is controlled by the parent company.
Several financial transactions, including AEPS and IMPS, can still be conducted after February 29, 2024. The bank is obligated to continue providing BBPOU and UPI facilities post this date.
Customers are allowed unrestricted access to withdraw or transfer funds from their wallets or accounts using the app. However, starting March 1, 2024, there will be a cessation of credits or top-ups into Paytm Payments Bank accounts or wallets, limiting beneficiaries to only withdrawing or transferring funds from their accounts.