A big question mark has arisen on the digital mission of the Government of India. RBI’s hammer has come down on Paytm, the company which is known as the uncrowned king of the world of digital payment services. The central bank has imposed several bans on RBI simultaneously. This is going to have a direct impact on the users using Paytm wallet. The Reserve Bank of India (RBI) has issued an order on January 31, which states that Paytm Payments Bank will not be able to accept new deposits after February 29. Besides, it will also not be able to provide banking services to its users. Let us try to understand which users will be affected by this? What will happen to the money of the customer who has already made FD? What will happen if the balance in the wallet is not spent by 29th? And most importantly, why has RBI taken this decision?
Ban on adding new customers
RBI has said in its order that Paytm users will not be able to use banking and wallet services after February 29. Besides, the company has also been ordered that it will not be able to add new customers after March 11. This will also affect the users who transfer funds with the help of Paytm Bank. The central bank has also ordered to close the nodal accounts of One97 Communications Limited and Paytm Payments Services Limited at the earliest, in any case before February 29, 2024. RBI has directed the Payments Bank to settle all pipeline transactions and nodal accounts by March 15 and put a stop to any other transactions after that. The bank has taken this order due to deficiencies in the audit report of the company.
30 crore users will be affected
No deposit, credit transaction or top up other than any interest, cashback or refund will be allowed in any account, prepaid instrument, wallet, Fastag, NCMC card etc. after 29th February 2024. Paytm had said in a filing of August 2023 that its average monthly users had increased by 19 percent on a year-on-year basis to 9.3 crore. According to the official website of Paytm, the number of new users is increasing every month. The company claims that it has 300 million i.e. more than 30 crore wallet users. At the same time, 30 million i.e. 3 crore customers have opened bank accounts in Paytm Payments Bank. This simply means that it is going to have a direct impact on 30 crore Paytm users.
What will happen to the amount already deposited?
There are lakhs of users in Paytm Payments Bank who have maintained their FD. Paytm offers an interest rate of 7.50% on those FDs for a tenure of 1 year. Among the 3 crore users, many are bank account holders who have got FD. They don’t need to worry. The bank has not imposed any restrictions on all those customers. That is, Paytm will continue to provide them interest rates as per the pre-determined rate. Currently, if you want to do FD, you will be allowed to do so, but after February 29, use of these services will not be allowed.
What if Paytm wallet balance is not spent till 29th Feb?
If you make payment by adding amount in Paytm wallet before 29th February, then you will not face any problem in it, but after 29th February, you will not be able to add balance in the wallet from your bank. If your balance is already added and you are not able to spend it till 29th February, then you will be able to spend it even after 29th. The Central Bank has not imposed any ban regarding this. Keep in mind that the use of this balance will have to be completed before March 15.
