The Reserve Bank of India (RBI) on Wednesday barred the Paytm Payments Bank from accepting deposits and carrying out credit transactions, from February 29. According to the RBI, the action was taken due to the Paytm Payments Bank's “persistent non-compliance”.
“Paytm Payments Bank Ltd (PPBL or the bank) to stop onboarding of new customers with immediate effect. The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” the RBI said in a statement.
Can you make UPI payments through Paytm?
RBI's action will affect those who have linked their UPI to their Paytm Payments bank account. However, if your UPI is linked to other banks, there will not be any changes.
Will shopkeepers accept money via Paytm?
If a seller receives money in a Paytm Payments bank account, then they will not be able to accept it after February 29. But they can continue accepting digital payments through other companies' QR codes.
Also read: Paytm Payments Bank: A look at previous RBI actions against Paytm subsidiary
What happens if you have a FASTag issued by Paytm?
Paytm has said that the users can continue to use the existing balance on their Paytm FASTags. “We are working on effective solutions to ensure a seamless customer experience and will keep you posted,” the company said on Thursday.
Will your NCMC card stop working?
{{/usCountry}}Paytm has said that the users can continue to use the existing balance on their Paytm FASTags. “We are working on effective solutions to ensure a seamless customer experience and will keep you posted,” the company said on Thursday.
Will your NCMC card stop working?
{{/usCountry}}No, you can use the existing balance on your Paytm National Common Mobility Card (NCMC) card.
Will the POS machine/soundbox work?
None of the merchant Paytm services will be impacted. All offline payment network offerings such as Paytm QR, Paytm Soundbox, and Paytm card machine will be functional.