Paytm, a major player in India's fintech scene, is facing a setback as its banking arm, Paytm Payments Bank Ltd (PPBL), is stopping key services from today. This comes after the Reserve Bank of India imposed restrictions on the bank, citing serious rule violations. Customers relying on digital payments are advised to find alternative banking solutions.
These services to stop from today:
- Paytm Payments Bank customers can no longer deposit money into their accounts, but can still withdraw or transfer funds.
- Users will no longer get salary credits, direct benefit transfers, and subsidies in their Paytm Payments Bank account, but will still continue to get refunds, cashbacks, and sweep-ins from partner banks.
- Users cannot top-up their wallets or transfer funds from their Paytm wallet, however, they can still use the money in their wallet to pay bills.
- Customers will not be able to recharge their FASTag issued by the Paytm bank.
- Recharging NCMC cards from Paytm Bank will not be possible.
- Users won't be able to transfer funds into Paytm Payments Bank accounts through UPI or IMPS.
- Customers can still use their Paytm balance to pay for subscriptions, but they will have to use a different bank account from March 15.
However, the Paytm app will keep running even after March 15. Your services will not be affected if you do not have a Paytm Payments Bank account. You can still use UPI services through the Paytm app, as long as it is linked to another bank.
Paytm's parent company, One97 Communications, got approval from the National Payments Corporation of India (NPCI) to continue offering UPI services as a Third-Party Application Provider (TPAP). Under this new setup, Paytm will partner with banks like SBI, Yes Bank, Axis Bank, HDFC Bank, etc, which will handle payment services for Paytm users.
You can keep using the Paytm app for all your bill payments and recharges. Your Paytm QR code, soundbox, and the card machine will also remain operational.
