Paytm Payments Bank Shut Down on March 15: The Paytm Payments Bank will shut down with effect from March 15 as per the Reserve Bank of India directive.But what happens to all the financial services financial services such as deposits, credit transactions, and FASTag recharges effective from Friday (March 15). Here is a detailed check-
Will Paytm stop working after March 15 and what happens to UPI access?
The good news for customers is that Paytm will not stop working after March 15. If you do not have an account with Paytm Payments Bank, your services won’t be affected.You will be able to access the UPI services through the Paytm app without any glitch as long as it is registered with any other bank. As a result of the approval from NPCI or National Payments Corporation of India to One97 Communications- Paytm’s parent firm, it can continue to be part of the UPI services but as Third-Party Application Provider (TPAP). Under the new multi-bank model, the payment service will now be in partnership with Yes Bank, Axis Bank, HDFC Bank and SBI . They will act as PSP or Payment System Provider (PSP) for Paytm users.
Why is Paytm Payments Bank being shut down?
RBI imposed restrictions on Paytm Payments Bank on January 31 citing serious violations of rules. According to reports, thousands of accounts were opened at the bank without proper identification, raising concerns about potential involvement in illegal activities such as money laundering. Additionally, the report also brought to light the instances where multiple accounts were associated with the same identification proof, accompanied by transactions involving substantial amounts. Furthermore, there was an abnormally high count of dormant accounts identified.
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Paytm Payments Bank shut down: Here’s what will be affected
Money depositing in Paytm
Starting from tomorrow, users will not be able to deposit funds into their PPBL accounts. Consequently, processes such as salary credits, direct benefit transfers, or subsidies linked to the account will also be temporarily suspended. However, refunds, cashbacks, and sweep-ins from partner banks will still be allowed.
Withdrawal and transfer of money through Paytm
Customers will lose access to features such as wallet top-up or money transfers after March 15. However, they will still be able to make payments using the balance available in their accounts.
FASTag Recharge via Paytm
National Highways Authority of India (NHAI) advised that PPBL-issued FASTags cannot be recharged, prompting the need for customers to acquire new FASTags issued by another bank.
Furthermore, NHAI also released a detailed list of authorised banks and non-banking financial companies (NBFCs) that can issue FASTags, namely – HDFC Bank, ICICI Bank, IDFC First Bank, Airtel Payments Bank, Axis Bank Ltd, Bandhan Bank, Bank of Baroda, Canara Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India and Yes Bank are present on the list.
Moreover, merchants using Paytm QR codes, Paytm soundboxes, or Paytm PoS terminals for transactions can continue to do so after March 15, only if their fund receipts and transfers are linked to a bank account other than PPBL.
