Anumber of Paytm services will stop working after March 15, 2024 due to restrictions imposed by the Reserve Bank of India (RBI) on Paytm Payments Bank Ltd (PPBL).Â
The RBI enforced these restrictions citing persistent non-compliance and continued material supervisory concerns on January 31, 2024. It prevented PBBL from accepting fresh deposits or top-ups after February 29, 2024. This deadline was later extended by 15 days to March 15, 2024.
To eliminate confusion and give clarity, the RBI issued a set of Frequently Asked Questions (FAQs) on February 16, 2024 about the ensuing restrictions on the bank’s services.
Here’s a comprehensive breakdown of the services that will and won’t be available after March 15, 2024.
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List of services that will be affected
Wallet top-ups and transfers – Customers will not be able to top-up or transfer funds into their wallets after March 15, 2024, except for cashbacks or refunds.
Deposit into Paytm Payments Bank accounts – No deposits will be accepted into customers’ Paytm Payments Bank accounts after March 15, 2024, except for interest, cashbacks, sweep-ins, or refunds.
Salary credit – Salary credits will not be accepted into Paytm Payments Bank accounts after the deadline.
Subsidies or direct benefit transfers: Credits of subsidies or certain direct benefit transfers will cease after March 15, 2024.
FASTag recharge – Customers cannot recharge their FASTags issued by Paytm Payments Bank after March 15, 2024.
Balance transfer for FASTag – The feature for transferring the balance from old FASTags issued by Paytm Payments Bank to new ones is not available.
Transfers into Paytm Payments Bank accounts via UPI/IMPS – Customers cannot transfer funds into their Paytm Payments Bank accounts through UPI/IMPS after March 15, 2024.
UPI services – The status of UPI services post-March 15 is subject to discussions between Paytm and the National Payments Corporation of India (NPCI), following guidance from the Reserve Bank of India (RBI).
Services that will not be affected
Withdrawals from Paytm Payments Bank -Â Customers can continue to withdraw or transfer funds from their accounts up to the available balance. Debit card transactions are also permissible within this limit.
Refunds – Refunds, cashbacks, sweep-ins from partner banks, or interest can still be credited to customers’ accounts even after March 15, 2024.
Monthly bill auto-deduction -Â Automatic deductions for monthly expenses such as electricity bills or OTT subscriptions will continue until there are sufficient funds in the account.
Auto debit for EMIs –Â Auto-debit mandates for loan EMIs will be honoured as long as there are funds available in the account. Customers are advised to set up alternative arrangements for EMI payments through another bank before the stipulated deadline.
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Wallet usage – Customers can utilise the balance in their Paytm Payments Bank wallets for various transactions, including transfers to other accounts or wallets.
Wallet closure and balance transfer – Customers with full KYC wallets can approach PPBL or use its banking app to close their wallets and transfer the balance to another bank account.
FASTag usage – Existing FASTags issued by Paytm Payments Bank can still be used to pay tolls until the available balance is depleted. However, customers are advised to obtain a new FASTag from another bank before March 15, 2024.
Withdrawals via UPI/IMPS –Â Customers can withdraw funds from their Paytm Payments Bank accounts using UPI/IMPS until the available balance is exhausted.
Continued app functionality – Users can rest assured that all services offered through the Paytm app will continue without interruption beyond March 15, 2024.
QR code, Soundbox, etc -Â Â Paytm’s QR code, Soundbox, and card machines will remain fully functional, ensuring seamless transactions for both users and merchants.
Services such as movie tickets, etc -  All existing services on the Paytm app, including ticket bookings for movies, events, and various modes of travel (metro, flight, train, bus), will continue as usual.
Utility bill payments –Â Â Users can conveniently recharge their mobile phones, DTH, or OTT subscriptions, as well as settle utility bills such as electricity, water, gas, and internet through the Paytm app. The app facilitates payment for a wide range of services, including booking cylinders, paying piped gas bills, apartment electricity bills, and insurance premiums.
Insurance services – Users can purchase insurance policies for vehicles, health, and more, as well as pay insurance premiums through the Paytm app.
FASTag services: While purchasing Paytm Payments Bank FASTags will not be possible after March 15, users can recharge their existing FASTags until that date. The app also offers HDFC Bank FASTags and recharge options for other partnered banks.
Investments and gold - Investments in Equity, Mutual Funds, NPS through Paytm Money, as well as transactions involving digital gold, are secure and fully functional.
Credit card payments –Â Users can continue to settle their credit card bills conveniently through the Paytm app.
Settlements in existing PPBL accounts will proceed smoothly until March 15, 2024, with continued access to account balances even after this date. Merchants can easily switch their settlement bank account from PPBL to another bank through the Paytm for Business app.
