New Delhi: Allaying fears of millions of Paytm customers if their app workability will be affected by the RBI decision, Paytm founder Vijay Shekhar Sharma has said that it will continue to “work beyond 29 February”.
“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. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it,” Vijay Shekhar Sharma wrote on X (Formerly Twitter).
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. For every challenge, there is a solution and we are sincerely committed to serve our nation in full…
— Vijay Shekhar Sharma (@vijayshekhar) February 2, 2024
The Reserve Bank of India (RBI) had on January 31 issued directive to Paytm Payments Bank (PPBL) ordering the lender to cease taking deposits or top-ups in any user accounts, wallets, FASTTags, and other instruments after February 29. Customers may, however, request a refund, cashback, or interest at any time.
According to a statement from the central bank, the directive comes in response to ongoing serious supervisory concerns and chronic non-compliances. The RBI had immediately prohibited PPBL from accepting new clients on March 11, 2022. However, the Paytm group company PPBL remained silent over the RBI’s directive against the bank.
“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. After February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” the RBI said. Additionally, its users are allowed to take out or use the balances from any of their accounts, including current accounts, savings bank accounts, prepaid cards, FASTags, and National Common Mobility Cards, as long as they have the money available.