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Paytm Ban: Which Services You’ll Lose – Full Scoop Inside!

Paytm Ban: On January 31, the Reserve Bank of India (RBI) put restrictions on Paytm Payments Bank Ltd (PPBL) because they didn’t follow the rules according to reports from an external auditor and a system audit. After February 29, PPBL cannot accept any more deposits or add money to any customer’s account, wallet, or FASTag.

Also, Paytm Payments Bank can’t offer extra banking services like transferring money, no matter what kind of service it is (like AEPS, IMPS, BBPOU, or UPI).

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The bank’s chief general manager said, “After February 29, 2024, you can’t put more money or do any money transactions in your customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., except for interest, cashbacks, or refunds that might be given later.”

Can people still withdraw money from their available amount?

Paytm Payments Bank clients can freely take out and use the money they have in their accounts, according to the central bank’s assurance. Up until February 29, 2024, there are no restrictions on using the money in savings accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, and more. However, after that date, they won’t be able to add any more money or receive credits.

Here are the services that will be restricted:

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  1. FASTags
  2. NCMC Cards, which include Fuel, Food, Metro, Bus, and Online shopping, including big platforms like ZARA, DMRC, Zomato, Swiggy, and others.
  3. Fund Transfers
  4. IMPS, UPI, AEPS, and BBPOU

The RBI has also mentioned that the Nodal Accounts linked to Paytm Payments Services Ltd. and One97 Communications Ltd. will be closed promptly, with a deadline set for February 29, 2024.

By March 15, 2024, all the special accounts and transactions that were started on or before February 29, 2024, will be sorted out and finished. After this date, no more transactions will be allowed. The main focus of the RBI’s decision is on Paytm’s banking operations. However, customers who have accounts with other banks can still use Paytm for digital payments.

The RBI decided to take these steps because a detailed audit report and an external audit found that there were ongoing serious concerns and repeated rule-breaking issues at Paytm Payments Bank. So, they needed to take extra steps to supervise and control the situation.

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Until the RBI gives further instructions, Paytm Payments Bank must follow these rules. Customers are advised to stay updated about these changes and adjust their financial transactions accordingly.

Know more about Paytm

When was Paytm Bank Payments started?

Paytm Bank Payments was started on 28 November 2017.

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Who is the founder of Paytm Bank Payments?

Vijay Shekhar Sharma is the founder of Paytm Bank Payments.

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