Fintech giant Paytm is not allowed to provide its clients with any kind of financial services, according to the Reserve Bank of India, the nation’s national bank. One 97 Communications, the company that operates Paytm, was targeted by the RBI for “non-compliance and continued material supervisory concerns in the bank.”
Numerous services provided by the platform can stop working as a result of the new limitation put in place by the RBI. The services that will function and those that won’t are listed below.
What will work is the UPI app for Paytm
Following the nodal transfer, users with FASTags issued by Paytm Payment Banks will be able to access their current funds through third-party banks and their FASTag wallet.
What will function is Paytm’s UPI app
Paytm users can continue to use the Paytm app and Paytm UPI without any restriction.
The offline merchant network will function
The onboarding of additional offline retailers will be possible thanks to the continuation of services like Paytm QR, Paytm Soundbox, and Paytm Card Machine for offline businesses.
What functions well: User deposits security
There is no effect on user deposits made in Wallets, National Common Mobility Card (NCMC) accounts, FASTags, or savings accounts. Consumers are still able to use their current balances.
Online merchant services are what will function
The online merchant payment gateway service will keep providing payment options to its current clientele.
What won’t work is collaborating with PPBL
The business will expedite its preparations to transition to relationships with other banks and will no longer cooperate with Paytm Payments Bank Limited (PPBL).
What won’t function is the onboarding of new clients.
It will not be possible for Paytm Payments Bank Limited (PPBL) to create new accounts or enroll new clients.
Paytm wallets or apps connected to Paytm Payments Banks won’t function.
After February 29, Paytmapp and wallets connected to Paytm Payments Banks will cease operations. The credits are still available to the recipient till February 29, 2024. The recipient can only take money out of his wallet or account after that. Beginning on March 1, 2024, no additions or credits to Paytm Payments Bank accounts or wallets are permitted.
Financial Services (Loan, Insurance, Equity Broking) are what will function.
Since they are not directly connected to the affiliate bank, other financial services including loan distribution, insurance distribution, and stock broking should remain unaffected.
Terminating the PPBL Nodal Account is what won’t work.
The nodal accounts of OCL and PPSL will be migrated to other banks during this time due to the mandate to terminate the nodal accounts by February 29, 2024.
