Paytm Ban in India?
Earlier this week, the Reserve Bank of India (RBI) prohibited Paytm Payments Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account. This Paytm banned, effective from February 29, 2024, includes prepaid instruments, wallets, and FASTags, among others.
RBI stated that the action against PPBL followed a comprehensive system audit report and subsequent compliance validation report from external auditors.
To address user concerns, Paytm has clarified that, despite the recent directives from the Reserve Bank of India on PPBL, Paytm UPI services will remain unaffected.
FAQs of Paytm Banned in India
Can I still use Paytm UPI?
If you are using the Paytm application for UPI, you should be able to operate normally. However, if you are using the bank account linked directly to Paytm Payments Bank, you will have to stop doing so from February 29.
The RBI action is against the banking operations of Paytm, which means customers can continue to use Paytm as a digital payment option as long as their bank account is linked to an external bank.
What will happen if your paytm bank account linked with your Paytm app?
There are no restrictions on using the Paytm app to transfer money or withdraw it from the wallet or bank account. Account holders can freely transfer money out of the wallet and bank accounts.
However, starting from March 1, they will not be able to receive money into their Paytm wallet or bank account due to the restrictions imposed by the RBI.
What will happen to the Fix deposits in Paytm Bank and What happens to my Paytm Payments Bank Account?
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account from accepting new deposits or allowing credit transactions after Feb 29th, 2024.
Please note that you will not be able to deposit or add money to your Paytm Payments Bank Account after Feb 29th, 2024. However, there is no restriction on withdrawal of money from your existing balance even after Feb 29th, 2024.
The directive does not impact your existing balances and your money is safe with the Bank.
Snippet: Paytm
What will happen to your Paytm Fastag or its National Common Mobility Card?
RBI has allowed customers to put out their balances but they cannot load more money from 1 March, 2024.
Snippet: Paytm
Can I continue to use Paytm Payments Bank Wallet ?
Yes, you can continue to use Paytm Payments Bank Wallet services. Please note that you will not be able to add money to your Paytm Payments Bank Wallet after Feb 29th, 2024.
However, there is no restriction on usage of existing balance from your wallet even after Feb 29th, 2024
Can I continue to avail all other services on Paytm App ? (e.g. Movie ticket bookings, financial services & more)
All other services on Paytm App are unaffected, you can continue to use them on Paytm as usual, now and beyond Feb 29th, 2024.
Can I continue to use Paytm to do recharges and pay my bills?
Yes, absolutely! You can continue using Paytm App for all your bill payments and recharges, like always. Rest assured, Paytm continues to support a wide range of payment options for your convenience.
Why Paytm partially banned in india?
According to Money Control, concerns related to money laundering and questionable transactions involving hundreds of crores of rupees between the well-known digital wallet Paytm and its less-known banking arm have prompted the Reserve Bank of India to take action against entities under the leadership of tech entrepreneur Vijay Shekhar Sharma.
The RBI has directed Paytm Payments Bank Ltd (PPBL) to cease most of its operations, including accepting additional deposits, engaging in credit transactions, and facilitating top-ups on customer accounts, prepaid instruments, wallets, and cards for road toll payments, effective from February 29.
For more detailed updated information you can visit or checkout Paytm official website and app.