Paytm has been sanctioned by the Reserve Bank of India (RBI) for failing to comply with regulatory guidelines. The app will not be able to accept new deposits in its wallet, payments bank, and even FASTags from March 15, 2024. This has created a situation of panic among business owners across India who accept online payments using Paytm’s merchant QR codes and soundboxes.
The good news is that RBI has now clarified that Paytm Soundbox, Paytm merchant QR code, and Paytm POS machines will continue to work seamlessly even after March 15. Merchants across India can keep accepting online UPI payments from customers using Paytm’s services.
RBI Allows Paytm To Keep Running Merchant QR Codes
While RBI has allowed Paytm to keep its merchant QR business active, it has put one major condition. Business owners are required to link their QR code, soundbox, and POS machine to a different bank, which can be any bank in India, excluding the Paytm Payments Bank.
So if you are a vendor who uses Paytm, you can simply change the default bank account where you receive your payments to a different bank. Paytm has also partnered with Axis Bank to ensure that merchant payments are settled without any issues.
Paytm Payments Bank: FAQs
But what about the Paytm Payments Bank? In case you want to know more about the Paytm situation, we have tried to answer as many questions below.
Will Paytm Payments Bank Work After March 15?
Unfortunately, No. Paytm Payments Bank, Wallet, and FASTags continue to remain sanctioned by the RBI. Users will not be able to add any new funds to these respective instruments. Hence, if you use the Paytm Payments Bank to receive any regular payment like your salary, you are advised to make alternate arrangements before March 15.
Can I get my pending refund in Paytm Payments Bank?
Yes, RBI has clarified that any user who is expecting a refund in their Paytm Payments Bank, Wallet, or FASTag will receive their refund even after March 15. Once the refund is received, users will be able to utilize those funds without any restrictions.
What happens to my fixed deposit (FD) in Paytm Payments Bank?
RBI says that users will be able to redeem and receive their funds from fixed deposits in their Paytm Payments Bank, even after March 15. However, users will not be able to create any new fixed deposits in Paytm.
What happens to the subsidy that I receive in Paytm Payments Bank?
Users will NOT be able to receive a subsidy or any other direct benefit transfers to their Paytm Payments Bank. RBI has asked users to contact their respective agencies and shift their subsidies to any other bank account.
Will Paytm FASTag Work After March 15?
Users will be able to utilize their existing funds in Paytm FASTag even after March 15. However, top-ups and recharges will not be permitted. Vehicle owners can either wait to utilize their existing funds or even prematurely deactivate their Paytm FASTag and get a refund.
Can I pay my bills using the leftover balance in Paytm Payments Bank?
Yes, Paytm users will be able to pay any bills like electricity, water, mobile recharge, gas cylinder, etc. using their leftover balance in Paytm Payments Bank and wallet. In case the bill payment fails, you will also receive a refund for the same even after March 15.
