The Reserve Bank of India (RBI) earlier this week took a major action against One97 Communications, the owner of Paytm, regarding Paytm Payments Bank Ltd (PPBL) due to “persistent non-compliances and continued material supervisory concerns”. It barred PPBL, which houses all of Paytm’s 330 million wallet accounts, from accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29. Here’s what customers need to know:
What Paytm Services Will Be Affected Due To RBI’s Action?
In its directive, the RBI on January 31 said, “No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime.”
No other banking services like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by PPBL after February 29, 2024, the RBI said.
The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd are to be terminated at the earliest, in any case not later than February 29, 2024.
Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024, and no further transactions shall be permitted thereafter.
What Paytm Services Will Continue?
The RBI, however, said withdrawal or utilisation of balances by its customers from their accounts are to be permitted without any restrictions, up to their available balance.
One97 Communications said, “Paytm and its services continue to remain operational beyond February 29 also, as most of the services offered by Paytm are in partnership with various banks (not just Paytm Bank).”
It added that the directives from RBI are on Paytm Payments Bank and not Paytm.
No impact on user deposits in savings, wallets, FASTags, NCMC accounts: Paytm says the company has been informed that the RBI action does not impact user deposits in their savings accounts, wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances.
Investments with Paytm Money Safe: Customers’ investments with Paytm Money are safe. The company assured that the recent RBI directives on Paytm’s associate bank won’t affect Paytm Money Ltd’s (PML) operations or customers’ investments in equity, mutual funds, or NPS.
Loan and insurance distribution to remain unaffected: Paytm’s other financial services such as loan distribution, and insurance distribution are not in any way related to PPBL and are expected to be unaffected by this direction, Paytm clarified in its exchange filing.
Paytm Payment Gateway: The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well.
PPSL will move the nodal to other banks: Paytm said it will pursue partnerships with various other banks, to offer various payment products to its customers.
Source By: news18
