RBI action against Paytm bank: Here's what happens next for users

According to RBI, the action against Paytm Payments bank was taken due to its “persistent non-compliance”.

Published on: Feb 1, 2024, 15:46:07 IST

By HT News Desk

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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?

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.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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