Recently the Reserve Bank of India (RBI) has taken strict steps regarding Paytm (Paytm), one of the biggest names in the world of digital payments. After this action taken against ‘Paytm Payments Bank’, many questions and fears have arisen in the minds of customers.
People are worried about whether their favorite app will stop working now or whether the money deposited in their bank account is safe or not. Actually, this action mainly focuses on the banking operations of Paytm, which is directly impacting those who have accounts with Paytm Payments Bank.
Will your UPI service be stopped?
The biggest question is whether it will now be possible to make payment by scanning QR code at shops? The answer is that if your UPI handle is linked to any other bank (like SBI, HDFC, or ICICI) and you are only using the Paytm app to make payments, then you do not need to fear. Paytm is now working as a ‘Third Party App’ (TPAP), like Google Pay or PhonePe do. This means that UPI transactions will continue through the app. However, if your UPI handle is directly linked to Paytm Payments Bank (@paytm), you are advised to migrate or link it to another bank account to avoid any technical disruption in future.
What will happen to wallet and bank balance?
For those customers whose money is deposited in the savings account or wallet of Paytm Payments Bank, the good news is that their money is completely safe. You can use your existing balance until it is exhausted. However, after the license is revoked or restrictions are imposed, you will not be able to deposit new money into your wallet or bank account. Additionally, things like cashback or refund may still arrive in your account, but loading money on your own will no longer be possible.
Impact on Fastag and other services
The situation regarding FASTag issued by Paytm Payments Bank has also become clear. As per RBI rules, you can use your old Fastag balance to pay toll, but it cannot be top-up or recharged. Therefore, to avoid any problem during travel, experts recommend that customers get a new Fastag from another authorized bank. Similarly, electricity bill payment or recharge facilities through Paytm will continue as long as you are using any other bank’s debit card or UPI for them.
Paytm crisis teaches us that in the digital era one should always keep a backup ready. If you were completely dependent on Paytm Bank, then it is time to move to another mainstream bank for your banking and UPI needs. The good thing is that the Paytm app itself has expedited the process of connecting customers with other banks so that their services continue without any interruption.