RBI impositions on Paytm in effect from tomorrow: What will change for users?

Deadline over: With the Reserve Bank of India’s restrictions on Paytm Payments Bank come into effect from March 15, a number of Paytm services will be defunct for its users.

On January 31, the RBI clamped down on digital payments app Paytm’s banking business, which is set to affect operations on the app.

What will happen to Paytm Payments Bank?

Users with a Paytm Payments Bank account cannot receive payments in it. Paytm also asked its users closer to the deadline to shift their default payments bank to another bank account other than its internal Paytm Payments Bank. 

This includes a shift to other bank accounts if you receive salary or direct benefit transfers from Aadhar on PPLB.

The users can only transfer or spend the amount upto the available balance via the bank, and using its debit card.

Auto payments, like OTT subscriptions can be debited even after the deadline, but shifting the account is a better option, the RBI said.

Only refunds, interest, cashbacks, sweep-in from partner banks or refunds will be credited to the account.

Can I use my Paytm Wallet?

Users will not be able to add money to their wallets, or receive money in their Paytm Wallets.

They will only be able to receive cashbacks and refunds on the wallet.

To transfer the money to another bank account and close the service, users can go on the Paytm Payments Bank icon inside the main Paytm App and close full KYC wallets. They can transfer the balance to another account.

For minimum KYC wallets, users can spend the balance or seek a refund from Paytm

Can I use FASTag?

If your FASTag account for automatic toll payments is routed through Paytm Payments Bank, you may need to change your FASTag and issue it from another bank.

The remaining balance can be used, but no top-up will be allowed.

The National Highways Authority of India (NHAI) asked users to switch their bank accounts for FASTag.

Users will not be able to transfer the FASTag balance to their new FASTag account.

Can I use Paytm UPI?

On March 14, the National Payments Corporation of India (NPCI) gave a third-party aggregator license to Paytm, which means it can still be used for payments after PPLB is discontinued from tomorrow.

The “@Paytm” handle will be redirected to YES Bank as part of the nod, with Axis Bank, HDFC Bank, State Bank of India, YES Bank acting as Payment Service Providers (PSP) for Paytm.

Can I use QR codes and sound boxes?

Users and merchants with a QR code not linked to Paytm Payments Bank can continue using it after March 15.

In case the QR code for users is linked to PPBL, they can generate a new QR code linked to another bank or wallet, or change bank account details.

What happens to my National Common Mobility Card (NCMC)?

Users can only spend, but not recharge NCMC cards registered through Paytm Payments Bank. They may have to change the aggregator bank to another one to continue using the service.

Transfers to another account are also not possible, but users can continue to withdraw and spend from the card.