RBI Clarifies: Regulatory Action Targets Paytm Payments Bank, Paytm App Unaffected

On Thursday, the Reserve Bank of India directive clarified that Paytm app services and apps will be safe. Paytm Payments Bank is the one who will face consequences and will stop depositing money on February 29, 2024. According to Reserve Bank of India guidelines, the Paytm Payments Bank cannot receive payments in any form, cash or online. FASTags associated with Paytm Payments Bank will be useless after February 29th. The ban on Paytm Payments Bank is temporary, but many experts believe that the Reserve Bank of India plans to completely close Paytm Payments Bank and cancel the bank’s licence.

The Reserve Bank of India published an FAQ in which Governor Shaktikant will answer all the questions that were in public after RBI’s action on Paytm Payments Bank, in which Governor Shaktikant said that Paytm app services and apps will be working even on February 29th. Experts asked people to withdraw the amount from the account before February 29th.

After the Reserve Bank of India restriction, one of the independent directors, Manju Agarwal, 

resigned from his position. Many irregularities were found in the Paytm Payments Bank.

The Reserve Bank of India found that from a single PAN, more than 1,000 accounts were running, which might be a case of money laundering as well. A spokesperson for the Paytm app asked people to continue using their soundbox and QR codes as they will be unaffected after February 29th.

Though many experts believe that it’ll be good to change the primary bank account in SoundBoc and QR Codes, after February 29th, the Paytm Payments Bank will not be able to deposit money, which will eventually affect your merchant’s soundbox.