Paytm has been on a roller coaster ride after getting sanctioned by the Reserve Bank of India for failing to comply with regulatory guidelines. The company has managed to rescue its merchant QR code business by partnering with Axis Bank and was also granted a TPAP status by the NPCI to keep running its UPI payment services.
However, Paytm FASTags, wallets, and other services will continue to face major restrictions. Let’s understand what features of Paytm will keep working, and what will stop after today’s March 15 deadline.
What will work on Paytm after March 15?
Paytm has officially confirmed that its main application will continue working after March 15. This includes utility payments like mobile recharge, cylinder bookings, water bills, DTH recharge, and other services.
The Paytm app also allows users to book movie, train, and bus tickets and purchase OTT subscriptions, which will continue to function.
What happens to Paytm UPI Payments?
UPI transactions using the Paytm app will continue working, meaning that users can use the Paytm app for merchant QR and P2P payments. The NPCI has granted Paytm a Third Party Application Provider (TPAP) status, under which Paytm has partnered with Axis Bank, HDFC Bank, SBI, and Yes Bank to offer UPI services.
Users with an @paytm UPI handle or virtual payments address (VPA) will be migrated to @ptsbi, @ptyes, or @pthdfc handles.
What happens to Paytm Merchant QR Code, Soundbox and POS Machines?
Paytm’s merchant QR codes, soundboxes, and POS machines will work seamlessly after March 15. Paytm has partnered with Axis Bank to process and settle merchant payments. Business owners who accept their settlement funds directly in Paytm Payments Bank must link another bank account to their QR code.
What about Paytm Digital Gold?
Users can also continue to buy and sell digital gold on the Paytm app after March 15. Paytm has clarified that these gold investments are protected with MMTC-PAMP, a government-regulated entity that sells digital gold and silver in India.
What about Paytm Money Investments?
Paytm Money, the company’s investment division, remains unaffected by the RBI sanctions. Users can continue to trade, invest, and redeem their funds from stocks, mutual funds, and other schemes using the Paytm Money app, which is regulated by SEBI.
What happens to Paytm Restaurant Deals?
Paytm deals on restaurant bookings will remain functional after the March 15 deadline. Users can avail themselves of offers, discounts, and other dining promotions through the Paytm app.
What will stop working on Paytm after March 15?
While Paytm has revived its merchant payments and UPI services through partnerships, the company has failed to rescue three of its biggest divisions: Paytm Payments Bank, Paytm FASTag, and Paytm Wallet. The RBI continues to sanction these services. Let’s understand the exact restrictions imposed on these services that come into effect after March 15.
Paytm Payments Bank
Users will not be able to make new deposits in their Paytm Payments Bank account after March 15. However, RBI has clarified that customers can utilize their existing funds without any restrictions. Furthermore, any pending refunds or cashback will also be allowed to be credited to Paytm Payments Bank.
Without manual deposits, the Paytm Payments Bank will slowly start shutting down entirely, unless any relief is provided by the RBI.
Paytm FASTags
The situation of Paytm FASTags is similar to Paytm Payments Bank, where car owners will not be able to make any new recharge to their FASTag account post-March 15. While they can use their existing wallet balance, users must eventually shift to another FASTag service.
The National Highways Authority of India (NHAI) has also issued an advisory notice for Paytm FASTag owners to migrate to a different FASTag issuer and blocked Paytm from issuing new FASTags.
Paytm Wallets and NCMC Cards
Paytm Wallet, NCMC cards, and other prepaid instruments like fuel wallet will not be able to accept new deposits and recharges after March 15. Users can continue to utilize their existing funds in these accounts until they exhaust the wallet balance.
Restoring these services’ normal functions is impossible for Paytm without the nod of RBI.
