Will Paytm Services Operate Normally After February 29?

Reserve Bank of India has directed Paytm Payments Bank Ltd (PPBL) to stop accepting new funds into its accounts or digital wallets beyond 29 February 2024. 
 

Allegations have been raised against Paytm of consistently disregarding compliance standards, citing findings from a system audit report and subsequent validation report. 
 

This regulatory measure is implemented under Section 35A of the Banking Regulation Act, 1949. 
 

Amidst the confusion, Paytm founder Vijay Shekhar Sharma has assured the customers that the app will operate normally beyond 29 February 2024. 
 

Users can comfortably add funds and transfer balances in their Paytm wallets without restrictions. Only services related to Paytm Payments Bank will cease. 
 

Paytm users whose accounts are linked to other banks can continue transactions normally beyond the specified date. Only Paytm Payments Bank users will be subject to restrictions.
 

FASTag is distributed by other banks and not Paytm Payments Bank, and therefore, it will remain operational without any restrictions.
 

The accounts that are linked to banks other than Paytm Payments Bank will face no interruptions. 

PPBL users can confidently navigate any possible disruptions by understanding RBI’s directives.