Paytm: The Reserve Bank of India took a strict action against Paytm Payments Bank Limited last Wednesday i.e. 31 January. RBI has banned the services of Paytm Payments Bank Limited under Section 35A of the Banking Regulation Act 1949. Paytm has been accused of irregularities in banking regulation, due to which RBI has taken such a big action.
RBI took strict action
After this action of RBI, users will not be able to use many facilities like Paytm Wallet, Deposit, Credit, Transaction, Top-up, Fastag Payment, NCMC Cards, UPI, and Fund Transfer from February 29 onwards. However, this does not mean that all the facilities of Paytm service have been closed.
RBI has banned the services of Paytm Payments Bank, which means that many other services of Paytm will continue even after February 29. Let us tell you about all those services, but before that let us tell you about the statement given by Paytm company on the morning of 1st February after the strict action by RBI.
What did Paytm say?
One 97 Communications Limited, the company running Paytm, has said that the Paytm app is working. Many of Paytm’s services are provided to users with the help of partnerships with many banks. Paytm does not provide services only with the help of its associate banks.
The company further said that Paytm had started working with other banks in the last two years, which they will now take forward rapidly. Paytm has said that it will expand its relationship with the country’s leading third-party banks to provide payments and financial services to users from February 29 onwards. The company has made it clear that it will not use Paytm Payments Bank Limited, but will provide services to its users with the help of other banks.
Will FASTag work or not?
According to the guidelines issued by RBI, users can use the existing balance available in the Fastag account till February 29. At the same time, Paytm has said in its statement that it will try to provide the service with the help of other banks, and will update the users about it soon.
Will Paytm Merchant Payment Service work or not?
There will be no impact on Paytm’s merchant payment service. This means that Paytm’s offline payment network like Paytm QR, Paytm Soundbox, Paytm Card Machine will continue to work as before. Apart from this, the company will also continue to provide its services to new offline merchants.
Will loan and insurance equity services work or not?
According to the company, other financial services of OCL like loan distribution and insurance distribution are not related to Paytm Payment Bank. For this reason, services like loan, credit card, insurance provided by Paytm will continue to work in future also.
Will equity services work or not?
Equity booking services are run by Paytm Money. Therefore, it is difficult to clarify anything about it yet, but the company has said in its official statement that the investment made by users with Paytm Money is completely safe. According to the company, RBI’s action will not affect Paytm Money operations or investments made by users in equity, mutual funds, NPS. The company has stated that Paytm Money Limited is a SEBI-regulated entity and is fully compliant.
Will ticketing, shopping, food, games services work or not?
Apart from all these services, services like ticket booking, shopping, games, food etc. available on Paytm app will also continue, but following the guidelines of RBI, Paytm will provide all these services to the users with the help of other banks.
Also read: Ban on these services of Paytm, know which apps will have to be used for payment now