Is your money safe in Paytm Payments Bank? Here’s what Vijay Shekhar Sharma has said and other FAQs answered | – Times of India

[ad_1]

As per the provisions outlined in Section 35A of the Banking Regulation Act of 1949, the Reserve Bank of India (RBI) has instructed Paytm Payments Bank Ltd. (PPBL) to immediately halt the process of onboarding new clients.
Effective February 29, 2024, all forms of transactions, including deposits, credit transactions, top-ups, and withdrawals, will cease in customer accounts, prepaid cards, wallets, FASTags, NCMC cards, etc.According to the RBI circular issued on January 30, 2024, the bank is prohibited from providing any additional banking services beyond the specified ones, such as fund transfers (including services like AEPS, IMPS, etc.), BBPOU, and UPI facility, after February 29, 2024.
Vijay Shekhar SharmaFounder of Paytm posted on social media X: To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it.

What will be allowed?

The sole exceptions will include interest, cashbacks, or refunds, which can be credited at any given time. Remitters retain the ability to utilise the application for withdrawing or transferring funds from their wallet or account at their discretion, without encountering any limitations.

Who will be impacted?

Customers have the freedom to utilise or withdraw any existing balance from their accounts, encompassing savings bank accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, and other accounts, without encountering any constraints.
As per the RBI circular, the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be ceased promptly, but no later than February 29, 2024.

What will happen to the transactions initiated on or before February 29, 2024?

All transactions initiated on or before February 29, 2024, including pipeline transactions and nodal accounts, must be settled by March 15, 2024. After this date, no further transactions will be authorised.

What will happen with Prepaid instruments, FASTag, NCMC transit cards, etc. provided by the Bank?

The funds in these instruments can be utilised, withdrawn, or transferred freely. Nevertheless, any additional top-ups or credits into these accounts are permissible only until February 29, 2024.

How will the RBI’s decision affect the utilisation of the PayTM app or the usage of the UPI channel via the PayTM app?

Users can freely use the PayTM app and the UPI channel without any limitations. It’s worth noting that the app is owned by the parent company, not PayTM Payments Bank.

What happens if the PayTM app and/or the remitter’s wallet are connected to an account held with PayTM Payments Bank?

The remitter retains the ability to withdraw or transfer funds from their wallet or account using the app at any time, without any limitations.

What happens if the PayTM app and/or the beneficiary’s wallet are linked to an account maintained with PayTM Payments Bank?

The beneficiary remains eligible to receive credits until February 29, 2024. Subsequently, the beneficiary can solely withdraw or transfer funds from their wallet or account. No further credits or top-ups into the Paytm Payments Bank account or wallet are permitted starting March 1, 2024.

Does the RBI’s action take effect immediately?

The RBI’s action to prohibit any additional credits or top-ups into the PayTM Payments Bank account or wallet will come into effect after February 29, 2024 (starting from March 1, 2024 onwards).

What happens with prepaid instruments, FASTag, NCMC transit cards, and other items issued by the Bank?

The balance within these instruments can be used, withdrawn, or transferred without any constraints. Nevertheless, any top-up or additional credits into these accounts are permissible only until February 29, 2024.

What is the current situation regarding the RBI’s decision, declared on March 11, 2022, prohibiting PayTM Payments Bank from accepting new customers?

The limitation on business activities implemented on March 11, 2022, remains in effect, and the action declared on January 31, 2024, is an additional measure.
Also Read | Looking for Paytm rival: Here’s how to get started with Amazon Pay Balance

Is it possible for a customer to access banking services through Paytm Payments Bank?

No, in accordance with the RBI directive, Paytm Payments Bank is prohibited from providing any banking services to customers after February 29, 2024.



[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *