RBI Imposes Restrictions on Paytm Payments Bank, Debunks Closure Rumors

Recent rumors circulating about the closure of Paytm Payments Bank after January 15th have been debunked by One97 Communications Ltd, the owner of Paytm. In a blog post, they clarified that such rumors are false.

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In reality, the Reserve Bank of India (RBI) has imposed certain restrictions on Paytm Payments Bank. These restrictions, effective from February 29, 2024, include:

> No New User Registrations: Paytm Payments Bank will not be able to onboard new users after February 29, 2024.

> No Acceptance of New Deposits: The bank will not be allowed to accept any new deposits after the specified date.

> Restrictions on Debit and Credit Transactions: Transactions involving debit and credit, including those through the wallet, will not be permitted.

> No Bar on Withdrawals: Existing customers, however, will still be able to withdraw funds from their accounts without any restrictions.

While these restrictions may impact Paytm Payments Bank users, there is no hindrance in withdrawing funds. Users with existing Paytm Wallets can continue to use them without any concerns.

In response to these developments, Paytm has assured its customers that it is actively addressing the situation, adhering to RBI directives. The company aims to expedite its plans and collaborate seamlessly with other banking partners.

Amid rumors, let's stick to facts: Paytm app is working and will continue to work post Feb 29th! FASTag, QR, Soundbox, and UPI, are all operational. Don't let misinformation sway you; trust in the convenience and impact we bring to daily life. #DigitalIndia #PaytmKaro pic.twitter.com/crVecm0IQb

— Paytm (@Paytm) February 2, 2024

In a recent tweet, Paytm reassured its users that the Paytm app, including FASTag, QR, Soundbox, and UPI, will continue to operate post-February 29th. Paytm encourages users to disregard misinformation and rely on the convenience and impact it brings to daily life.

Your favourite #Paytm app and its services are fully operational, and will continue to work even after Feb 29th 🇮🇳 #PaytmKaro pic.twitter.com/U7gSdRGBAF

— Paytm (@Paytm) February 3, 2024

As the situation unfolds, Paytm users are advised to stay informed and, if necessary, reach out to Paytm for more details on their account status and available options.