Paytm has partnered with other banks for continuity of UPI services on its app
The RBI on January 31 directed Paytm Payments Bank to stop accepting deposits or recharges into customer accounts, wallets, FASTags and other instruments after February 29.
New Delhi: The UPI service on Paytm will continue to function normally as the company works with other banks to make changes to the back-end for the continuity of its services, the fintech company said on Monday. The Paytm UPI service comes under the Paytm Payments Bank, which was recently banned by the Reserve Bank of India from taking money from customers after February 29.
“UPI on Paytm continues to operate normally. We work on the back end to connect with other banks to ensure seamless continuity of service. Users do not need to do anything extra,” said a Paytm spokesperson.
According to the National Payments Corporation of India (NPCI), PPBL was the largest UPI beneficiary among banks in December, with 283.5 crore transactions received by it during the month. It had transferred 41 crore transactions during the period. Customers made 144.25 crore transactions on the Paytm Payment Bank app worth Rs 16,569.49 crore in December. Paytm's Bharat Bill Payment Operating Unit (BBPOU) business is also under PPBL. The service facilitates the payment of utility bills, school and college fees, etc.
When asked about the impact of the RBI measure on bill payments through BBPOU, a Paytm spokesperson said, “Please note that Paytm users can continue to use the app for all bill payments and recharges as always. Paytm continues to support a wide range of payment options for your convenience.” The RBI on January 31 directed Paytm Payments Bank to stop accepting deposits or recharges into customer accounts, wallets, FASTags and other instruments after February 29.
Withdrawal or use of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags and National Common Mobility Cards, should be allowed without any restriction, up to the available balance.
Paytm Wallet users can continue to transact until February 29. However, after February 29, they will be able to use their existing balance until it runs out, but will not be able to add money to their account.
The same rule applies to PPBL accounts, Paytm wallet-linked services like Fastag and National Common Mobility Cards used for travel on the Metro and other public transport.