Are Paytm Wallet And Fastag Still Accessible? Find Answers To All Your Questions
On Wednesday, the Reserve Bank of India imposed a ban on all services provided by Paytm Payments Bank Ltd (PPBL), dealing a significant blow to one of India's leading fintech companies. What does this development mean for users and their associated services? Here's a comprehensive overview.
Can you still use UPI ?
There is no immediate impact anticipated for customers utilizing the Paytm app for United Payments Interface (UPI) transactions, which constitute 70% of the company's Gross Merchandise Value (GMV), according to AllianceBernstien. If you currently use a Paytm Payment Bank account for your UPI transactions , it will cease to operate after February 29. However, if your UPI address is linked to other banks such as SBI or ICICI Bank, this regulatory action will not affect you.
What happens to the Paytm wallet ?
Since a user's Paytm wallet relies on PPBL, wallet services will face disruption. Deposits into the wallet will be accepted until February 29, and customers can utilize the funds until exhausted. The wallet's GMV constitutes approximately 5% of Paytm's total. Users are permitted to transfer the wallet balance to any bank account without incurring additional charges.
What about Fastag and sub-wallets?
Credit transactions or top-ups will no longer be permitted in any customer accounts, prepaid instruments, Fastags, or other Prepaid Payment Instruments (PPI) after February 29. This restriction applies to National Common Mobility Cards (NCMC) used in metros, as well as food and fuel wallets. Existing balances can be utilized until depleted, but no fresh funds can be added after the end of February.
What if you have a Paytm Fastag ?
Users possessing a Fastag issued by Paytm should procure a new tag from alternative issuers and deactivate the existing one. Paytm is the third-largest player in this sector, intensifying the impact on users. In December of the previous year, Paytm had processed approximately 58 million Fastag transactions.
What happens to stock market and mutual fund services?
Services related to the stock market and mutual funds fall under the purview of the market regulator SEBI and are not covered by the RBI 's order.
What about loans obtained through Paytm?
The loan distribution business faces no risk. Loans acquired through Paytm involve third-party lenders, not the fintech company itself. Consequently, borrowers must continue making their repayments without any disruption.
Can you still use UPI ?
There is no immediate impact anticipated for customers utilizing the Paytm app for United Payments Interface (UPI) transactions, which constitute 70% of the company's Gross Merchandise Value (GMV), according to AllianceBernstien. If you currently use a Paytm Payment Bank account for your UPI transactions , it will cease to operate after February 29. However, if your UPI address is linked to other banks such as SBI or ICICI Bank, this regulatory action will not affect you.
What happens to the Paytm wallet ?
Since a user's Paytm wallet relies on PPBL, wallet services will face disruption. Deposits into the wallet will be accepted until February 29, and customers can utilize the funds until exhausted. The wallet's GMV constitutes approximately 5% of Paytm's total. Users are permitted to transfer the wallet balance to any bank account without incurring additional charges.
What about Fastag and sub-wallets?
Credit transactions or top-ups will no longer be permitted in any customer accounts, prepaid instruments, Fastags, or other Prepaid Payment Instruments (PPI) after February 29. This restriction applies to National Common Mobility Cards (NCMC) used in metros, as well as food and fuel wallets. Existing balances can be utilized until depleted, but no fresh funds can be added after the end of February.
What if you have a Paytm Fastag ?
Users possessing a Fastag issued by Paytm should procure a new tag from alternative issuers and deactivate the existing one. Paytm is the third-largest player in this sector, intensifying the impact on users. In December of the previous year, Paytm had processed approximately 58 million Fastag transactions.
What happens to stock market and mutual fund services?
Services related to the stock market and mutual funds fall under the purview of the market regulator SEBI and are not covered by the RBI 's order.
What about loans obtained through Paytm?
The loan distribution business faces no risk. Loans acquired through Paytm involve third-party lenders, not the fintech company itself. Consequently, borrowers must continue making their repayments without any disruption.
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