Ever since the Reserve Bank of India (RBI) announced restrictions on Paytm Payments Bank (PPBL), many users have been wondering its impact on Paytm app. The biggest question that many users have is if the digital payments app will continue working as usual post February 29. In a post on X, formerly Twitter, Paytm CEO Vijay Shekhar Sharma has clarified that Paytm is working and will continue to work as usual even after February 29.
“To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it,” he posted.
What RBI has barred
RBI has ordered PPBL to settle all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) by March 15, 2024 and no further transactions would be permitted thereafter. The country’s apex bank has barred Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024. One97 Communications Ltd (OCL), which owns Paytm brand, has 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
During an earnings call on February 1, the Paytm top management said that they are working on a migration plan for PPBL, wallet, FASTag etc users with other banks.
Separately, the company informed that its offline merchants network offering and device business like Paytm Soundbox, EDC, QR are not impacted by the Reserve Bank of India’s (RBI) direction to its associate bank.
The fintech company will also continue onboarding merchants to its platform.
“The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Other financial services such as loan distribution, insurance distribution and equity broking, are also not in any way related to Paytm’s associate bank and are expected to be unaffected by this direction,” the company said.
“To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it,” he posted.
What RBI has barred
RBI has ordered PPBL to settle all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) by March 15, 2024 and no further transactions would be permitted thereafter. The country’s apex bank has barred Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024. One97 Communications Ltd (OCL), which owns Paytm brand, has 49 per cent stake in PPBL but classifies it as an associate of the company and not as a subsidiary.
During an earnings call on February 1, the Paytm top management said that they are working on a migration plan for PPBL, wallet, FASTag etc users with other banks.
Separately, the company informed that its offline merchants network offering and device business like Paytm Soundbox, EDC, QR are not impacted by the Reserve Bank of India’s (RBI) direction to its associate bank.
The fintech company will also continue onboarding merchants to its platform.
“The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Other financial services such as loan distribution, insurance distribution and equity broking, are also not in any way related to Paytm’s associate bank and are expected to be unaffected by this direction,” the company said.
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