RBI’s top goal: protecting Paytm users, says Governor Das, starting from March 1, 2024, the RBI has announced that all deposits or credit transactions will not be permitted in Paytm bank customer accounts.

On Monday:

Governor Shaktikanta Das of the Reserve Bank of India emphasized that safeguarding Paytm Payments Bank customers is the central bank’s foremost concern. Additionally, he stated that the RBI will maintain its decision to limit the entity’s activities and will not reconsider it.

He told media persons in New Delhi,

“We take all decisions after lot of consultation, a lot of analysis… At the moment, let me be very clear, there is no review of this decision.”

The Paytm bank was under the scanner for a long time and the RBI had on 11 March 2022 directed it to stop onboarding new customers with immediate effect.

On 31 January 2024:

the RBI prohibited Paytm Payments Bank Ltd (PPBL) from taking deposits or credit transactions or top-ups from any customer from February 29. The central bank gave a one-month transition time to PPBL’s customers so that their urgent transactions linked with the payment bank is not abruptly halted.

RBI’s top goal: protecting Paytm users, says Governor Das, during a press conference after the RBI’s Central Board of Directors’ meeting, which was addressed by Union finance minister Nirmala Sitharaman.

Addressing Paytm Bank Customers’ Concerns:

Das announced that the RBI will release a set of frequently asked questions (FAQs) later this week to address the concerns of Paytm bank customers.

He stated,

“The FAQs we plan to issue aim to address the inconveniences or issues faced by depositors, customers, wallet users, and FASTag holders. We are focusing on matters that are in the customers’ best interests.”

Regarding the review of the decision,“There are no discussions underway.

Additionally, the RBI stated that:

All deposits or credit transactions in Paytm bank customer accounts will be prohibited starting March 1, 2024. However, customers will still receive interest, cashbacks, and refunds, and they can withdraw or utilize their account balance.

Das emphasized:

While the RBI supports fintech, It’s primary goal is to:

safeguard the interests of customers and depositors, given that the money of millions of people is at stake.

The Paytm spokesperson did not respond to an email query. The company, however, circulated an email to its customers saying their money is safe and they can make withdrawals.

“Please note that you will not be able to deposit or add money to your Paytm Payments Bank Account/Wallet after Feb 29, 2024.

However, there is no restriction on withdrawal of money from your existing balance even after Feb 29, 2024.

The email sent on February 2nd said:

“The directive does not impact your existing balances and your money is safe with the Bank.”