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Following the restriction on certain services of Paytm Payments Bank, can you still perform money transfers using the Paytm app? The company provided this response.

Paytm

Paytm Payments Bank Hit by RBI Restrictions: What You Need to Know

Effective February 29, 2024, Paytm Payments Bank faces significant limitations imposed by the Reserve Bank of India (RBI). While the core mobile wallet experience remains largely intact, key functionalities associated with the bank itself are restricted. Let’s break down the impact and what it means for you.

What's Restricted:

Paytm payment bank restrictions

1. New Deposits & Credit Transactions:

You can no longer add money to your Paytm Payments Bank account or wallet, nor can you avail credit facilities like overdrafts.

2. Wallet Services:

Services linked directly to the bank, like FASTag and National Common Mobility Cards, will stop accepting top-ups and new subscriptions.

3. Fund Transfers & Bill Payments:

Post-February 29th, Paytm Payments Bank users won’t be able to perform fund transfers, online bill payments, or use Bharat Bill Pay services.

What's Still Available (Paytm Payments Bank):

Paytm Payment Bank

1. Existing Wallet Balance:

The money currently in your Paytm Payments Bank wallet or account remains safe and accessible. You can freely utilize it for online payments, recharges, and existing subscriptions.

2. UPI Transactions:

The popular Unified Payments Interface (UPI) functionality on the app is unaffected. You can continue making seamless payments and money transfers using this method.

3. Withdrawals:

You have the option to withdraw your existing balance from ATMs or Paytm Payments Bank branches without any restrictions.

Uncertain Future of UPI:

While UPI transactions currently function normally, their long-term availability on Paytm after February 29th is unclear. Ongoing discussions between the RBI and the National Payments Corporation of India (NPCI) will determine this fate.

Reasons for Restrictions:

The RBI cited “material supervisory concerns” regarding Paytm Payments Bank’s operations as the reason for these limitations. While the specific details haven’t been publicly disclosed, the bank is reportedly cooperating with the RBI to address them.

Impact on Customers:

Existing Paytm Payments Bank users can continue utilizing their existing balance for various transactions. However, adding new funds, availing credit, or using some specific services are temporarily unavailable.

Alternatives to Consider:

For the restricted functionalities, users can explore alternative options like:

1. Adding money to wallets directly linked to UPI platforms like Google Pay, PhonePe, or Amazon Pay.

2. Utilizing your primary bank’s mobile app for fund transfers and bill payments.

What's Next:

The RBI will review the restrictions after six months. If Paytm Payments Bank effectively addresses the concerns, the limitations might be lifted. For now, customers can utilize alternative solutions while awaiting further developments.

Remember:

While the restrictions pose temporary limitations, the core mobile wallet experience and existing balances remain unaffected. Explore alternative options for restricted functionalities and closely monitor official updates for clarity on the future of UPI access on Paytm.

Source:Â