After the Reserve Bank of India (RBI) told Paytm Payments Bank to make some changes, the founder,
Vijay Shekhar Sharma, assured users that the payment app will keep working as usual. He shared this information on his X account and spoke with the users.
Talking about the RBI ban on a simple platform, he said every problem has a solution, and Paytm will stick to its promise.
Here’s what happened with the ban
Last year, the central bank asked Paytm to make changes and said that new users can’t be linked to Paytm Payment Bank.
Because Paytm didn’t follow RBI guidelines, a notification about the ban was sent, following Section 35A of the Banking Regulation Act, 1949.
The Reserve Bank mentioned that new users can’t open accounts in Paytm Payments Bank Ltd (PPBL).
Also, there won’t be top-ups in any linked services. For instance, users can’t top-up FasTag, which was issued by Paytm and is now inactive.
Users can’t deposit or transfer any amount in the account, and they have until February 29 to do so.
People were worried about the ban
Many users were unsure if the payment app would still work. However, the ban only affects those using services linked to Paytm Payments Bank, like wallets, FasTag, and NCMC cards.
Even after February 29, users can still use the existing amount in the bank, but no more money can be deposited or transferred.
