RBI Confirms: Paytm App to Remain Operational After February 29

The Reserve Bank of India, or RBI, made a significant decision on January 31st. Under this, the Reserve Bank of India instructed Paytm Payments Bank to cease operations and imposed restrictions on it. RBI directed Paytm Payments Bank Limited to not onboard any new customers, prepaid instruments, wallets, or fast-tags after February 29, 2024, and to not accept new placements or top-ups. In this situation, users facing difficulties using Paytm Payments Bank accounts have many questions. Many people are concerned whether the Paytm app will also be shut down after February 29 due to the RBI’s restriction on Paytm Payments Bank.

Now, in response to this, RBI has clarified that the Paytm app will not be shut down after February 29. The Reserve Bank of India has stated on Thursday that Paytm Payments Bank (PPBL) has come under regulatory scrutiny and that it will have no impact on the Paytm app. RBI Deputy Governor T. Rabi Sankar said after the Monetary Policy Committee (MPC) meeting, A clarification will have to be made, this particular activity is against Paytm Payments Bank, it will not be linked to Paytm Bank. This process will not affect the Paytm application.

When asked whether other banks can collaborate with Paytm Wallet, they stated that this is a business decision, and banks must follow the policy approved by their directors through necessary procedures. They said, “I believe if they seek partnership, they will complete the necessary processes.”

RBI Deputy Governor Swaminathan said that due to the continuous violation of regulations by FinTech companies (RBI FinTech Ban), they are undertaking operations. You should be aware that when there is a ban on Paytm Payments Bank, you can still spend money deposited in your Paytm Bank account. Besides, you can also use Paytm UPI as before. However, you will not be able to access Paytm Bank-related services such as Paytm Wallet and Fastag.