Paytm is a digital mode of transaction of monetary resources, to look at the history of Paytm it was founded in August 2010 by Vijay Shekhar Sharma in Noida, Delhi. Paytm could be stated as the “Digital revolution” in India by analyzing its deep roots of success and innovations in digital transaction media. Paytm has features of a wallet, access to a payment gateway, and Rapid transaction of money, and introduces a wide range of offers for Paytm users. Paytm also provides facilities to pay for the following categories such as booking for train tickets, paying for movie tickets, train and other transportation tickets, and insurance. This article, lets us understand the contemporary scenario of Paytm and the Skepticism of shutting down Paytm or the announcement regarding the working process of Paytm after February 29, 2024, and the Extension up to March 15, 2024.

Source- Paytm

What is going on with Paytm?

Paytm is a high-profile digital transaction media that helps to transfer and pay bills and money in a quick and accessible way, Yet currently Paytm is in a sensational context due to the issue of restrictions provided by the Reserve Bank of India ( RBI) to Paytm. RBI has currently enforced certain restrictions on the Paytm payments bank due to persistent payments by Paytm. This controversy put Paytm users in a dilemma, the CEO of Paytm responded to the statement of RBI restrictions and enabled it to ensure transparency and confidence to the current users of Paytm. People are eagerly searching for What is going on with Paytm? Here you can get the detailed information What is going on with Paytm? in the following. 

RBI restrictions Notable rules have to be followed during the till the date of Feb 29, 2024

Paytm Users are eagerly searching Will Paytm App Work After February 29? Here you can get the detailed answer about Will Paytm App Work After February 29? in the following.

1.No establishments new accounts and deposits

RBI has passed an order that after the end of the month February 29-02-2024, no new accounts are permitted to use Paytm, the process of installation of the app and accessibility of Paytm cannot be feasible after the end of February.

2. Limitation in the Transaction process

The transactions strictly have been made limited as per the limitations granted by RBI, and then Debit, credit transaction including wallet transactions will not be permitted and allowed access for the new users, the existing users can transfer or receive money in their respective savings account.

3. Impact of Existing users

The impact of existing users could be cited as they might face limitations of transferring and receiving money from their savings account linked in the Paytm digital mode of transactions.

4. Paytm Wallets and Fast Tags

Paytm wallets, Fast Tags, and mobility cards will be affected, which means the ability to pay for the categorised transactions will also be affected, such could be paying insurance, Mobile bills, booking tickets, and other such will also be affected due to paytm wallets. Fast-Tag is nothing but a tag used to make all kinds of transactions of payments directly linked to the respective savings account that could also be affected.

Important Facts to be noted

Withdrawals of money

There are no restrictions that have been amended for the withdrawal of money from the Paytm Payment Bank, You can withdraw the money from Paytm by using your debit card until the available balance is over.

Deposits

After March 15, 2024, the accomplishment of transferring or depositing money into your Paytm Payments Bank account. Interest, cashback, sweep-ins from partner banks, or refunds are only allowed to be credited.

Salary Credits

After March 15, 2024, if the salary has been credited to your Paytm account, you will not be able to receive it. It would be recommended to make alternative arrangements with another bank to avoid disruptions of further misleading.

Government subsidies

Any form of government subsidies or direct benefit linked to your Aadhaar will also not be accessible and credited to your Paytm Payments Bank account after March 15 20204.

Paytm responses to The RBI statement

To the current imposition of RBI restrictions, Paytm has proposed their response to the statement for RBI concerns. Paytm, stated that “they are working at the obligations of RBI directions, In addition to One 97 Communications Limited, the parent company of Paytm passed a statement, that they will not collaborate with other banks instead of Paytm Payments bank. Furthermore, Paytm ensures the restrictions passed by the RBI.

Merchant QR Codes

The marchant can use the QR code for accepting and receiving money they can continue to do so until they have been linked to other accounts into the QR code other than those upheld by Paytm.

Is Paytm Shutting Down?

To trace the current sensational dilemma of the RBI restriction towards Paytm, hundreds of bank accounts are created without proper identification of the required bank details, and the staggering fact is those hundred accounts are linked to the same Permanent Account Number (Pan) Card number. Also, these accounts are traced without any proper KYC.  The RBI has found these hundred accounts through external audits. Henceforth this unusual pattern made the RBI issue a restriction on Paytm.

Impact of users and its significance

This whole situation made the Paytm users miserable, so the impact on the users is significant and it’s essential to stay informed about the proceedings of any further development, Paytm continues to operate with restrictions of services.

What will continue to eventuate after Feb 29?

The foremost ambiguity for all would be the scenario of Paytm after February 29, 2024. Eventually, the investigations are in process to sort the issues or errors occurring in the Paytm payments. As far as now, Paytm cannot permit new users, and the limitations are applied to the existing users.

RBI order & statement

Confining the issue, the Reserve Bank of India has passed an order stating that the Nodal accounts of parent company One 97 Communications and Paytm Payment Bank Ltd are ordered to terminate, however, the customer can remain the same to utilize the monetary resources of their savings account and account balances including savings and current account without any restrictions up to the available limit.

Founder Vijay Sharma seeks to visit Nirmala Sitharaman for further clarification

After the declaration of the RBI restrictions, the Founder of Paytm the respective Vijay Sharma, seeks to visit the honorable Finance Minister Nirmala Sitharaman, for the confessions of the current scenario. Vijay Sharma has appealed to the finance minister to take off the restrictions and to bring the normal conditions of Paytm. As for as the update of till date, the negotiation has taken place among the founder of Paytm, the Finance Minister, and the RBI Governor, but to point to the driven confining statement till now, The governor of RBI Shaktikanta Das replied that there is no second review of the decision taken by the RBI.

The final statement of RBI as far as now

The conclusive statement of RBI was passed an issue that no new users are permitted, and limitations and boundaries are set to the existing users for the limitation of Transactions and receiving of money from the savings. Further charges might be also formulated due to changes in the medium of Paytm payments. These whole scenarios will create questions about the credibility of Paytm, excepting further clarification from the progress of the investigated case. However, Paytm’s founder called this entire concern, “Factually incorrect”.