PayTM FAQs: Paytm users are in confusion after RBI action on Paytm Payments Bank. Users want to know whether our money is safe or not? Are they even ahead now? Paytm Can use UPI? What will happen to Paytm Wallet or FastTag? Apart from this, many types of questions are coming in the minds of the users and it is important to know about this. Paytm Payments Bank has been banned from taking deposits from 29th February. Paytm users are quite confused by this move of the Reserve Bank.
During the lockdown, most of the traders became customers of Paytm for the convenience of transactions and were also using it, but after this ban of the Reserve Bank, traders and common people are now in a dilemma. They don’t understand what to do. However, traders’ organization CAT has definitely tried to solve the problems of traders by issuing guidelines in this regard. He says that there is no need for shopkeepers and users to panic, because your money is completely safe. Users report on these problems.
Why was Paytm banned?
The Reserve Bank of India had found in a technical audit that there were some problems in the money and data traffic flow of Paytm Payments Bank. Hundreds of accounts were opened on the same PAN number. Transactions were taking place with them. Transactions were taking place in the account without proper identification i.e. KYC. Paytm was on the target of banking regulator RBI for a long time. Paytm was also warned about this in the years 2018, 2022 and 2023. Despite this, Paytm did not take it seriously. He told that the Reserve Bank has given time to Paytm. If he recovers during that time period, the ban may also be lifted.
Will Paytm app be closed after 29?
No, Paytm app will continue to function as before. RBI banned Paytm’s digital payment bank, not the Paytm app. The company has clearly said in a statement that Paytm and its services will continue to operate even after February 29. Because most of the services provided by Paytm are not only in partnership with the associate bank (Paytm Payments Bank) but also with other banks.
What will happen to your money?
Paytm Wallet customers can use it till their balance is exhausted. They will not be able to add money to it after 29th February. If RBI does not relent, top-up for Paytm wallet will stop and transactions will not be possible through it. This means that Paytm wallet users can continue transactions till February 29. However, after February 29, they will be able to use their existing balance till it is exhausted. Customers will not be able to add any money to the wallet after February 29.
What is the other option for users?
At present, more than 20 banks and non-banking institutions provide wallet services. Prominent among them are Mobikwik, PhonePe, SBI, ICICI Bank, HDFC, Amazon Pay. Similarly, 37 banks like SBI, HDFC, ICICI, IDFC, Airtel Payments Bank provide Fastag service. Users can recharge Fastag through their bank’s mobile banking, internet banking or third party apps like Google Pay and PhonePe.
How is Paytm’s digital bank different from ordinary banks?
Paytm Payments Bank is quite different from other banks. Money can only be deposited in Paytm Payment Bank. They do not have the right to give loans. This is a bank account in which money can be kept, but cash cannot be withdrawn from ATM. One97 Communications holds the license for prepaid payment instrument, which was used to launch Paytm Payments Bank. Generally, the payment made to shopkeepers goes into their Paytm payment account. Then from there it can be transferred to another bank. For this, Paytm gives credit points to its merchants.
What to do with the money lying in wallet and fast tag?
Reserve Bank has banned Paytm Payment Bank due to irregularities. Despite several warnings to Paytm, the management did not pay attention to this. In such a situation, for now, account holders of Paytm should not use wallet and fast tag and withdraw their money.