What will happen to your money if Paytm Payments Bank is closed?: Paytm users are confused after the RBI action on Paytm Payments Bank (PPBL). Users want to know whether our money is safe or not? Can they still use Paytm UPI? What will happen to Paytm wallet or Fastag? Apart from this, many types of questions may be coming in the minds of the users and it is important to know about this. What should you do in such a situation? We are going to give you answers to all these questions. So first of all let us tell you that there is no need to panic, because your money is completely safe.
How did Paytm start?
Vijay Shekar Sharma, CEO of One97 Communications Limited, created a digital payments company, which gave Indians the option to buy vegetables or cinema tickets or pay electricity and water bills from their mobile phones. Plan was made to create a marketplace, where every kind of goods from matchsticks to iPhones could be bought and sold online. However, now he is facing the biggest crisis of his business era.
The Reserve Bank of India (RBI) has directed Paytm Payments Bank to stop most of its business. In such a situation, the company is facing a huge crisis.
What will change after the ban on Paytm Payments Bank?
RBI has directed Paytm Payments Bank Limited not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. Earlier, on March 11, 2022, RBI had stopped PPBL (Paytm Payments Bank) from adding new customers with immediate effect.
Who is the owner of Paytm Payments Bank?
Paytm Payments Bank Limited (PPBL) is a subsidiary of One97 Communications Limited (OCL). One97 Communications holds 49 percent of the paid-up share capital of PPBL (directly and through its subsidiary). Vijay Shekhar Sharma has 51 percent stake in the bank.
What will happen to your money?
Paytm Wallet customers can use it till their balance is exhausted. They will not be able to add money to it after 29th February. If RBI does not relent, top-up for Paytm wallet will stop and transactions will not be possible through it.
This means that Paytm wallet users can continue transactions till February 29. However, after February 29, they will be able to use their existing balance till it is exhausted. Customers will not be able to add any money to the wallet after February 29.
What is the other option for users?
At present, more than 20 banks and non-banking institutions provide wallet services. Prominent among them are Mobikwik, PhonePe, SBI, ICICI Bank, HDFC, Amazon Pay. Similarly, 37 banks like SBI, HDFC, ICICI, IDFC, Airtel Payments Bank provide Fastag service. Users can recharge Fastag through their bank's mobile banking, internet banking or third party apps like Google Pay and PhonePe.
Why did RBI ban Paytm Payments Bank?
The banking regulator was continuously pointing towards irregularities. According to sources, Vijay Shekhar has been sent to the Reserve Bank of India due to money laundering concerns and suspicious transactions worth hundreds of crores of rupees between the popular wallet Paytm Wallet and its lesser-known banking arm Paytm Payments Bank. Sharma's institutions had to be tightened.
What does Paytm say?
Paytm management has said that Paytm Payments Bank is in discussion with RBI to continue business and is ready to follow their instructions. One97 Communications Limited (OCL) CEO Vijay Shekhar Sharma said on Friday that digital payment and services app Paytm is working and even after February 29, it will continue to work as usual.
Vijay Shekhar Sharma said, 'To all the Paytm users. your favorite app is working and will continue to work even after February 29. I salute you along with every member of Paytm for your continued support. Every challenge has a solution and we are committed to serve the country honestly with full compliance. 'India will continue to achieve global accolades in payments innovation and inclusion in financial services, with Paytm Karo contributing the most.'
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