What Happens To Your Paytm Wallet After February 29? Here's What You Need To Know
On January 31, the Reserve Bank of India (RBI) barred Paytm Payments Bank Ltd from making credit transactions and accepting fresh deposits. Notably, in March 2022, India”s apex bank asked the Paytm Payments Bank to stop onboarding new customers.
The RBI stated that this strict action was precipitated by Paytm Payments Bank”s “persistent non-compliances.” The RBI also mentioned in its circular that continued material supervisory concerns at the bank warranted further supervisory action. “No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024,” said the country”s apex bank in a circular released on January 31. Notably, One 97 Communications Ltd is the parent company of Paytm Payments Bank.
Meanwhile, customers are still eligible to access their existing deposits and pay for services with money stored in their wallets. One 97 Communications mentioned in its statement that RBI”s move will not impact user deposits in their savings accounts, wallets, FASTags, and NCMC accounts. The company also said that they will completely move to other banking partners to provide financial services to customers. “We now will accelerate the plans and completely move to other bank partners,” said One 97 Communications in a statement.
According to a Bloomberg report, Paytm”s loans, insurance distribution, and equity broking businesses will also remain unaffected. Services will be usual until February 29 for customers. After that, customers will not be able to make deposits or credit transactions. “Withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, upto their available balance,” said the RBI in its circular.
You can continue using the existing balances on your Paytm FASTag. We started our journey of working with other banks over the last two years, which we will now accelerate pic.twitter.com/clsDLVUD1N
— Paytm (@Paytm) February 1, 2024
Paytm also posted a fact-check on X, where it rejected the claim that users” FASTags will stop working. Paytm informed that users can continue using the existing balances on their Paytm FASTag. The company also added that they are working on effective solutions to ensure a seamless customer experience.
