Paytm has been facing RBI restrictions in the country which has been impacting the services of the mobile wallet. The Reserve Bank of India (RBI) has reportedly imposed restrictions on Paytm Payments Bank due to "persistent non-compliance" with the regulatory guidelines. The measures, effective from February 29 are said to be impacting various aspects of Paytm's operations.
What will be the effect on Paytm services after 29 February?
- Account Operations: It is said that the new deposits, credit transactions, top-ups, and withdrawals will be stopped for a while. After the designated date, no new users could be added to the platform.
- Paytm Wallets, FASTags and Mobility Cards: The existing balances in Paytm wallets, FASTags, and mobility cards can still be used by the users. But beyond the date, no additional recharges or deposits will be allowed on the platform.
- Merchant Services: Merchant services including Paytm QR, Soundbox and Card Machine are widely used across various industries- from malls, stores, departmental stores, vegetable vendors or even a cobbler from the street are using the services. After February 29, the offline merchant onboarding will continue as usual, without any hurdles.
- UPI Payments: The services will remain the same after the designated date, ensuring seamless transactions.
- Paytm Mutual Funds and Stock Accounts: Investments through Paytm Money are said to be secure and will remain unaffected by the RBI's directives. The Paytm Money operations, on the other hand will remain compliant with SEBI regulations.
- Other Paytm Services: Users will still be able to book movies and travel tickets from the platform, without any disruption.
Hence, the platform will work normally on the Paytm app after February 29.
What did the CEO say about the functionality of Paytm after February 29?
Vijay Shekhar Sharma, the CEO of Paytm has reassured the users that the application will continue to function normally after the regulatory changes. Additionally, discussions with regulatory bodies are underway to ensure compliance and adherence to guidelines for UPI services.