Can you use Paytm wallet after Feb 29?

In line with its jurisdiction under Section 35A of the Banking Regulation Act of 1949, the Reserve Bank of India has directed Paytm Payments Bank Ltd. (PPBL or the bank) to immediately suspend onboarding new clients.

What will not be permitted

After February 29, 2024, no more deposits, credit transactions, top-ups, or withdrawals will be permitted in any customer accounts, prepaid cards, wallets, FASTags, NCMC cards, etc.




According to the RBI circular dated January 30, 2024, “No other banking services, other than those referred in above, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024.”

Your Paytm FASTag likely to become inoperative after Feb 29; here’s what you should do


What will be allowed?

The only exceptions will be interest, cashbacks, or refunds, which may be credited at any time.

The remitter can continue to use the app to withdraw or transfer funds from his wallet or account at any time, without any restriction

Also read: Income Tax Budget 2024 Live update


Who will be impacted

Customers can remove or use any available balance from their accounts, including savings bank accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, and other accounts, without any limitations.

The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024, as per the RBI circular.

Transactions initiated on or before February 29, 2024

All pipeline transactions and nodal accounts (for transactions began on or before February 29, 2024) must be settled by March 15, 2024, and no more transactions will be authorised after that date.

Why Paytm Payments bank was asked to stop onboarding of new customers with immediate effect.

This step occurred after the Comprehensive System Audit report and following compliance validation report of the external auditors identified chronic non-compliances and sustained substantial supervisory concerns in the bank, requiring additional supervisory action, said RBI.

What should Paytm customers do

Paytm customers should use up your balance and then buy a new one.

Updates from our conference call on RBI directives for Paytm Payments Bank, an associate of Paytm.

“In offline versions, where you see our All-in-one QR, powered by Paytm Payments Bank, now that QR will need to be changed to any other sponsored bank. This will be a large exercise, the new acquisition will immediately start in a week or two”, says President and COO Bhavesh Gupta.

“We have been working with our various partners. Equity and Insurance are unaffected as they do it independently. Lending has no connection with Paytm Payments bank”, says President and COO Bhavesh Gupta.

“There are a set of products that the Paytm app offers to users, some products like FASTag are already distributed by other banks will continue,” says President and COO Bhavesh Gupta.

Here are some important FAQs Paytm users should know.

What happens to Prepaid instruments, FASTag, NCMC transit cards, etc. issued by the Bank?

The balance available in these instruments can be used, withdrawn or transferred, as the case may be, without any restrictions. However, any top up or further credits into these accounts are allowed only upto February 29, 2024.


Will the RBI’s action impact usage of PayTM app or UPI channel usage through PayTM app?

No. Members of public can continue to use the PayTM app and the UPI channel without any restriction (incidentally, the app is owned by the parent company and not by PayTM Payments Bank).


What happens if the PayTM app and / or the wallet of the remitter is linked to an account maintained with PayTM Payments Bank?

The remitter can continue to use the app to withdraw or transfer funds from his wallet or account at any time, without any restriction.


What happens if the PayTM app and / or the wallet of the beneficiary is linked to an account maintained with PayTM Payments Bank?

The beneficiary can continue to receive the credits upto February 29, 2024. Thereafter, the beneficiary can only withdraw or transfer funds from his wallet or account. No credits or top ups into Paytm Payments Bank account or wallet are allowed from March 1, 2024.


Does RBI’s action kick-in immediately?

RBI’s action of prohibiting any further credits or top ups into PayTM Payments Bank account or wallet, will take effect after February 29, 2024 (i.e. from March 1, 2024 onwards).


What happens to Prepaid instruments, FASTag, NCMC transit cards, etc. issued by the Bank?

The balance available in these instruments can be used, withdrawn or transferred, as the case may be, without any restrictions. However, any top up or further credits into these accounts are allowed only upto February 29, 2024.


What is the status of the RBI’s action announced on March 11, 2022, barring PayTM Payments Bank, from onboarding new customers?

The business restriction imposed on March 11, 2022 continues to be in force and the action announced on January 31, 2024 is over and above this.

William Murphy

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