Paytm clarifies the RBI ruling: Here’s what happens to Paytm users both now and after February 29th, from Wallet to FASTag.
In response to the Reserve Bank of India’s ruling imposing a number of restrictions on the company’s various services, Paytm has released a statement. Fund transfers, Paytm Wallets, Paytm FASTags, and other features are affected by the order. This is what your situation will be.
The Reserve Bank of India on Thursday, January 31, put a set of limitations on Paytm Payments Bank due to “persistent non-compliances and continued material supervisory concerns in the bank.” According to the central bank’s press release, starting on February 29, the change may have an impact on Paytm Wallets, Paytm FASTags, money transfers, and credit transactions, among other things. Both current users and their remaining balances with Paytm Payments Bank will be unaffected.
Paytm has now issued an official statement outlining the RBI directive. The business claims that “PPBL is taking immediate steps to comply with RBI directions, including working with the RBI to address their concerns as quickly as possible.” Here is what Paytm mentioned in their announcement, along with an explanation of how it will impact current consumers.
Paytm clarifies the RBI directive.
According to Paytm, users’ current deposits and balances in their savings accounts, Paytm Wallets, Paytm FASTags, and mobility/transit cards are unaffected by the Reserve Bank of India’s recent action. After February 29, users can still use this balance event.
Furthermore, according to Paytm, the platform would keep providing payment services to Indian merchants and company owners who are currently in operation. According to a press statement from the firm, “One 97 Communications Limited’s (OCL) offline merchant payment network offerings, such as Paytm QR, Paytm Soundbox, and Paytm Card Machine, will carry on as usual, with the ability to onboard new offline retailers.”
In a press statement, Paytm also states that One 97 Communications, the parent business of the app, intends to fully switch to other bank partners and will not collaborate with Paytm Payments Bank, the organisation that was subject to the central bank’s prohibition. Going ahead, OCL will not be collaborating with Paytm Payments Bank Limited; instead, it would only work with other banks. “The next phase of OCL’s journey is to continue to expand its payments and financial services business, only in partnerships with other banks,” reads the Paytm news release.