Paytm Ban: Is there a ban on wallet also, what will happen to UPI service and deposited money? Know the answer to all your questions

Paytm Ban: Is there a ban on wallet also, what will happen to UPI service and deposited money?  Know the answer to all your questions

RBI On Paytm Payment Bank: Banking sector regulator Reserve Bank of India has taken strict action against Paytm Payments Bank Ltd and has banned the addition of new customers. RBI has imposed this restriction following the powers given under Section 35A of the Banking Regulation Act 1949. Paytm is accused of irregularities in banking regulation, due to which RBI has taken this big action. 

After this action taken by RBI against Paytm Payments Bank Limited, many questions are arising in the minds of Paytm Payments Bank Limited customers. For example, is this ban limited to Paytm Payments Bank or has this ban been imposed on other payment banks. Will anyone be able to use Paytm Wallet or not? Let us try to find answers to these questions. 

Question – Is this ban only on Paytm Payments Bank? 

Answer – Yes, RBI has imposed this ban only on Paytm Payment Bank Limited. 
 
Question – Does this mean that no one can use Paytm wallet anymore? Can? 

Answer – After February 29, 2024, no customer will be able to deposit money nor do credit transactions in Paytm wallet. Also, there will be no top up facility in Paytm wallet. 

Question – Okay, tell me, what will happen to the amount in the wallet? 

Answer – The balance amount remaining in the customer's wallet can be used till it is exhausted. Customers will have the freedom to withdraw and use money. There is no fixed time limit.

Question – What are the options for refund of wallet amount? 

Answer – There is no option to refund the wallet amount. The amount left in the wallet can be used. Money cannot be added to the wallet after February 29, 2024. 

Question – Now will Fasttag payment not be possible through Paytm? 

Answer – Customers can make Fastag payment through Paytm till the balance is reached. But after 29 February 2024, no money can be deposited or topped up in Fastags. 

Question – How long will wallets, FASTags, NCMC cards work? 

Answer – RBI has said in its order that after February 29, 2024, neither deposits will be allowed in the accounts of Paytm Payment Bank customers, prepaid instruments, wallets, FastTags, NCMC cards nor customers will be able to do transactions through them. Will not be able to top up the amount.  

Question – What has been decided regarding UPI facility? 

Answer – After February 29, 2024, banking services like UPI facility, Bharat Bill Pay and fund transfer facility will be banned. 

Question – If for some reason my funds are left in Paytm, how will they get back? 

Answer – In its order, RBI has ordered Paytm to settle all the transactions and nodal accounts lying in the pipeline by March 15, 2024. 

Read this also 

RBI's big action on Paytm, many services including deposits, transactions, wallet and FASTag will be closed from March 1.

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