Can the Paytm app be used after February 29? 8 things Paytm users should know

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,ET Online|

Feb 02, 2024, 04:37:24 PM IST

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The Paytm fiasco

Following the Reserve Bank of India's (RBI) directives to Paytm's associate bank, Vijay Shekhar Sharma, the company's founder and CEO, assured consumers that the Paytm app will remain operational after February 29. In a post on social media X, Vijay Shekhar Sharma said, "To every Paytmer, Your favourite app is working, will keep working beyond 29 February as usual. I, with every Paytm team member ,salute you for your relentless support.
According to the fintech behemoth, it plans to broaden its current partnerships with top third-party institutions to offer more financial services and payment solutions. Paytm users don't need to fear, as the company has stated that the services listed below are operational and won't be subject to any limitations, in compliance with the RBI's directive.
Here is a look at how the RBI directive impacts different Paytm users, as per a Paytm spokesperson.

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Paytm app to continue to work beyond 29th Feb

Paytm and its services will continue to be functioning after February 29th, as most of the services given by Paytm are in cooperation with other banks. Over the last two years, fintech has begun to collaborate with other banks, a process that will be accelerated. Paytm collaborates with a variety of banks (not just its partner bank) on a variety of payment solutions. The firm provides acquiring services to merchants in collaboration with many top banks in the nation and intends to grow third-party bank relationships.

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No impact on user deposits in savings, Wallets, FASTags, NCMC accounts

"The directives from RBI are on Paytm Payments Bank and not Paytm," the company said. Paytm has been informed that this does not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances.

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Investments with Paytm Money safe

Loan and insurance distribution to remain unaffected

Paytm's other financial services such as loan distribution, and insurance distribution are not in any way related to Paytm Payments Bank Limited and are expected to be unaffected by this direction, the company clarified in its exchange filing.

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Paytm Payment Gateway

The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Paytm's offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well.

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PPSL will move the nodal to other banks

Paytm noted that it will pursue partnerships with various other banks, to offer various payment products to its customers. "With regard to the direction on termination of the nodal account of One97 Communications Limited and Paytm Payments Services Limited (PPSL) by February 29, 2024, and PPSL will move the nodal to other banks during this period," it added.

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Paytm's offline payments

Paytm offers acquiring services to merchants in partnership with several leading banks in the country and will continue to expand third-party bank partnerships. "Paytm's offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well," it said in exchange filing.

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Bills payments remain unaffected

Mobile recharges, subscriptions and other recurring payments will continue to operate smoothly even after RBI directive.

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Can the Paytm app be used after February 29? 8 things Paytm users should know - The Paytm fiasco (2024)

The Paytm fiasco

Paytm app to continue to work beyond 29th Feb

No impact on user deposits in savings, Wallets, FASTags, NCMC accounts

Investments with Paytm Money safe

Loan and insurance distribution to remain unaffected

Paytm Payment Gateway

PPSL will move the nodal to other banks

Paytm's offline payments

Bills payments remain unaffected