Can the Paytm app be used after February 29? 8 things Paytm users should know

Paytm and its services will continue to be functioning after February 29th, as most of the services given by Paytm are in cooperation with other banks. Over the last two years, fintech has begun to collaborate with other banks, a process that will be accelerated. Paytm collaborates with a variety of banks (not just its partner bank) on a variety of payment solutions. The firm provides acquiring services to merchants in collaboration with many top banks in the nation and intends to grow third-party bank relationships.

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“The directives from RBI are on Paytm Payments Bank and not Paytm,” the company said. Paytm has been informed that this does not impact user deposits in their savings accounts, Wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances.

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Customers’ investments with Paytm Money are secure. The business stated that the latest RBI guidelines on Paytm’s associate bank will have no impact on Paytm Money Ltd’s (PML) operations or its clients’ investments in equity, mutual funds, or NPS. Paytm Money Limited is SEBI-regulated and completely compliant.

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Paytm’s other financial services such as loan distribution, and insurance distribution are not in any way related to Paytm Payments Bank Limited and are expected to be unaffected by this direction, the company clarified in its exchange filing.

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The Paytm Payment Gateway business (online merchants) will continue to offer payment solutions to its existing merchants. Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well.

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Paytm noted that it will pursue partnerships with various other banks, to offer various payment products to its customers. “With regard to the direction on termination of the nodal account of One97 Communications Limited and Paytm Payments Services Limited (PPSL) by February 29, 2024, and PPSL will move the nodal to other banks during this period,” it added.

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Paytm offers acquiring services to merchants in partnership with several leading banks in the country and will continue to expand third-party bank partnerships. “Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well,” it said in exchange filing.

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Mobile recharges, subscriptions and other recurring payments will continue to operate smoothly even after RBI directive.

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