Many Paytm Money customers are understandably worried about their investments in the wake of the RBI’s decision to suspend certain activities of Paytm Payments Bank owing to ongoing substantial supervisory concerns and continuous non-compliances, which require additional supervisory action.
Can you use Paytm for UPI after RBI action?
To ease the customers’ worries, Paytm Money, in a mail to its investors, said that the Paytm Payments Bank Ltd (PPBL) does not have any impact on the operations of Paytm Money Ltd (PML) and has no impact on your investments with PML in Equity, Mutual Funds or NPS.
The Reserve Bank of India under section 35A of the Banking Regulation Act, 1949, had directed Paytm Payments Bank Ltd (PPBL or the bank) to stop onboarding of new customers with immediate effect.
Paytm Money has highlighted the below points for their investors
1. PML is regulated by SEBI and is fully compliant to all regulations and policies
2. Your equity, bonds, ETFs are all secured in your CDSL Demat Account and consequently are always safe and transactions as you are aware can only be done with your authorisation
3. Your Mutual Fund/SIP investments are with respective AMCs and are also safe. You can continue to invest/redeem as usual
4. Funds that are transferred to PML’s trading account are up-streamed (transferred) to Indian Clearing Corporation Ltd (ICCL) of BSE as per SEBI regulations, and thus are also safe.
For investors whose default is Paytm Payments Bank
According to the Paytm Money mail, “For investors who have set PPBL as their default account, you will need to change it before 29th February 2024 with a simple addition of an alternate bank. We shall communicate the specific process for the same separately and help you get this done. We appreciate your continued trust and support. If you have any questions, please do not hesitate to contact us at feedback@paytmmoney.com.”
Paytm founder Vijay Shekhar Sharma took to X and stated: “To every Paytmer,” Sharma wrote, addressing the platform’s user base directly. “Your favourite app is working, will keep working beyond 29th February as usual.”
— Paytm (@Paytm)
Here are some of the Myths and facts, that Paytm has tweeted from it social media handle on X.
Gold Investments
Your Paytm Gold Investments are completely safe and protected with MMTC-PAMP. This has no relation to the recent directives from RBI on Paytm Payments Bank.
— Paytm (@Paytm)
Mutual Fund and Equity investments
Your investments with PaytmMoney are safe. The recent directives on our associate bank do not affect Paytm Money’s operations.
— Paytm (@Paytm)