Paytm, a prominent figure in India’s financial technology sector, faces a significant setback as its banking division, Paytm Payments Bank Ltd (PPBL), announces the cessation of crucial services starting today. This development follows the imposition of restrictions by the Reserve Bank of India due to serious violations of regulations. Individuals who rely on digital transactions are urged to seek alternative banking options.
Effective immediately, the following services will cease:
- Deposits into Paytm Payments Bank accounts will no longer be accepted, although withdrawals and transfers remain operational.
- Salary credits, direct benefit transfers, and subsidies will no longer be credited to Paytm Payments Bank accounts. However, refunds, cashbacks, and sweep-ins from partner banks will continue.
- Wallet top-ups and fund transfers from Paytm wallets are suspended, but existing wallet balances can still be used for bill payments.
- Recharging FASTags issued by Paytm bank is discontinued.
- NCMC card recharges from Paytm Bank are no longer available.
- Funds cannot be transferred into Paytm Payments Bank accounts via UPI or IMPS.
- Subscriptions can still be paid using Paytm balance, but customers must use a different bank account from March 15th.
Despite these changes, the Paytm app will remain operational post-March 15th. Services will remain unaffected for users without a Paytm Payments Bank account. UPI services through the Paytm app will continue, provided it is linked to another bank account.
In a recent development, Paytm’s parent company, One97 Communications, received approval from the National Payments Corporation of India (NPCI) to continue offering UPI services as a Third-Party Application Provider (TPAP). Under this arrangement, Paytm will collaborate with banks such as SBI, Yes Bank, Axis Bank, HDFC Bank, etc., which will handle payment services for Paytm users.