Hello readers, In recent news we got to know that Paytm which is a leading payment app is banned by RBI. People are still in confusion about why is paytm shutting down, why RBI has banned Paytm payments bank account, and now what will happen to their Paytm Fastag. If you’re also who are getting these questions in their mind, then we got you up, In this article you’ll find all the explanation and solution of your answers and you’ll also read the real news. After reading this article, you’ll get clear about all the curious.
What Happened To Paytm Payments Bank? and Why Did RBI Banned Paytm?
RBI, which is Reserve Bank Of India announced a ban and restricted on all the services which were given by Paytm payments Bank (PPBL) like top-ups, deposits, prepaid services, Fastags and wallets, which will come in effect from 29th February 2024.
RBI banned PPBL services because of Non compliances and continued multiple supervisory concerns in the bank. therefore, RBI ordered them for no new customers on Wednesday, this was previously also done in March 2022 because of non compliances but no serious actions were taken by the company towards the order of RBI.
The RBI officials said, on Why Paytm Banned
“The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,”
now the biggest question that comes in the mind of users is that will Paytm now work?, What will happen to paytm now? and most important Questions that What Will Happen To Paytm Fastag let’s understand it in detail and most of us are paytm users and might have questions like this.
Though, because of this order most of the services are restricted but not all, here are all the services explained in detail.
- Fund transfer, UPI transactions to be restricted after February 29, people will not be allowed to transfer their money through PPBL (paytm payments bank limited )
- Paytm wallet can be used for deposits till 29th February but can be used only until the available amount. However, you are allowed to transfer money from your wallet to your banks.
- No such changes are done in the stock market and loans users can easily issue them and payback according to their option.
- No further deposits can be done in the bank, however you can use your existing balance until it is exhausted.
- Debit and credit cards transaction are restricted however you can still withdrawal your amounts. RBI strictly said restrictions of further deposits after 29th February 2024.
What Will Happen To Paytm Fastags ??
The biggest biggest questions of all is what will now happen to your Paytm fastags which you have issued from paytm. Here’s the answer and solution of your problem.
As per the RBI’s order, the top ups for fastags are restricted and also for NCMC cards used for foods, metros, trains, fuel etc. The deposits can be done only till 29th February, but after that no new deposits can be done. However you can use your existing balance without any issue and extra charges.
The simple solution for this problem is you can opt for new fastags from different banks which provide these facilities, you’ll easily find this in our upcoming article “How To Port FASTag From Paytm or Transfer Fastag from Paytm to another bank“.
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