Paytm crisis: After February 29, will you still be able to utilize Fastag and wallet services?

Paytm crisis: After February 29, will you still be able to utilize Fastag and wallet services?

The RBI has instructed Paytm Payments Bank to cease all significant activities after February 29. The following is the status of the Paytm Wallet and Fastag services as of March 1.

To put it briefly

After February 29, Paytm Payments Bank is required by RBI to cease operations.

Finance Minister Nirmala Sitharaman was met by Paytm CEO Vijay Shekhar Sharma.

Following news of the meeting with the Finance Minister, Paytm shares have increased.

Popular digital payments company Paytm has experienced turbulence after the Reserve Bank of India (RBI) took regulatory action.

Due to regulatory violations, the RBI ordered Paytm Payments Bank to cease its basic banking services, which caused a sharp decline in Paytm shares.

Vijay Shekhar Sharma, the CEO and creator of Paytm, has reportedly been meeting with RBI officials and Finance Minister Nirmala Sitharaman in an effort to lead the company toward safety.

According to the RBI instruction, Paytm Payments Bank services will stop on February 29. As a result, consumers will not know what the platform will provide going forward.

Let's examine what Paytm's services has in store for the future.

Can users keep using their Paytm wallets?

Users won't be able to add money after February 29, 2024, however they may still utilize the Paytm Payments Bank wallet services. Even after February 29, the wallet's current amount remains usable.

Are consumers able to pay their bills and recharges?

Yes, consumers won't have any issues using Paytm to recharge and pay their bills. They may keep using the services, such as purchasing tickets for movies, flights, trains, etc.

Is Paytm FASTag still usable by users?

Paytm Payments Bank's most popular offering is Paytm Fastag, which is used to pay tolls on roads.

The Paytm wallet is directly connected to the FASTag service. Additionally, users won't be able to add any new balances to it after February 29 due to RBI's prohibition on its services. In essence, this renders Paytm FASTag dormant.

But even with a balance in your wallet, you may utilize Paytm FASTag.

What about services offered by UPI?

While the business works with banks to guarantee smooth service, users may continue to utilize UPI services on the Paytm app, including money transfers and QR code payments.

Paytm said on Monday that its UPI service would be running as usual and that it is collaborating with other banks to make back-end modifications to guarantee system stability.

The Reserve Bank of India (RBI) has prohibited Paytm Payments Bank (PBBL), which operates the Paytm UPI service, from offering consumers any essential services beyond February 29. This includes top-ups for Paytm wallets.

What happens to the money of users? Is it secure?

After February 29, 2024, the Reserve Bank of India (RBI) has issued an order prohibiting new deposits into Paytm Payments Bank accounts and wallets and enabling credit transactions.

Nonetheless, you may still take money out of your current balance even after February 29, 2024.

The user's money is secure with the bank, and this order has no effect on the amount currently in their account or wallet.