The Paytm payments bank subsidiary has been directed by the RBI to stop taking new deposits into its popular wallets and accounts as of March 1. The utility of Paytm’s UPI services in the future has been questioned in light of this development.
Users of Paytm are unsure about what will happen to their accounts and services due to recent RBI moves. There are still unanswered questions regarding the possible closure of the app, what will happen to the money in their Paytm accounts, and if they can make UPI payments.
Users of Paytm will not be able to make any financial transactions in their Paytm Payments Bank accounts after February 29. After the designated date, retailers who depend on Paytm Payments Bank will no longer get payments.
Paytm has been hit by the RBI for breaking regulations, and as a result, beginning of March 1, it is not allowed to enroll new users or make deposits or top-ups. For current consumers, there are no limitations on withdrawals, and money from wallets, FASTags, and mobility cards can still be used.
It is recommended that customers expend funds in their Paytm wallets or move it to a different wallet or bank account before February 29.
Due the above action by RBI Paytm’s shares have seen a significant drop in the Indian stock market. Industry professionals believe that the factors mentioned above have caused this significant decline.