Paytm App Users Retain Access to Services Amid RBI Restrictions

Following RBI restrictions, users of the Paytm app will still have access to all services such as mobile and DTH recharges. However, Paytm Payments Bank's offerings, including wallet funds, Fastag, and bank accounts, will not be accessible. Users of Paytm Payments Bank won't be able to add funds to their wallet or bank accounts but can utilize their existing balance until depleted, as per the RBI directive.

The Reserve Bank of India (RBI) has issued a directive, effective March 15, 2024, limiting Paytm Payments Bank Account/Wallet from accepting new deposits or facilitating credit transactions. Paytm has clarified in its frequently asked questions (FAQ) that users will be unable to deposit or add funds to their Paytm Payments Bank Account/Wallet after this date. Nevertheless, there are no restrictions on withdrawing money from existing balances even beyond March 15, 2024.

The company has announced that users can purchase HDFC Bank FASTags and recharge FASTags from other partnered banks through the Paytm app. However, it is not possible to buy Paytm Payments Bank FASTags through the app. Nevertheless, any remaining balance in the Paytm Payments Bank FASTags can still be utilized until fully depleted.

The company has confirmed that all other services available on the Paytm app, including movie bookings, event tickets, and travel reservations for metro, flights, trains, and buses, are operating without any interruptions. Users can also seamlessly recharge their mobile phones, DTH, or OTT subscriptions, as well as settle utility bills such as electricity, water, gas, and internet bills directly through the Paytm app.

Paytm app users can continue to use UPI service as NPCI has approved collaboration of the firm with four banks-SBI, HDFC, YES Bank and Axis Bank. Paytm will work as a third-party app (TPAP) and facilitate UPI transactions through the partner bank. It has got five handles in partnership with four banks to continue UPI transactions, as per an update on the NPCI website.