New Delhi, Fintech firm Paytm recently faced regulatory actions from the Reserve Bank of India (RBI), leading to questions about the continuity of its services. The central bank directed Paytm Payments Bank, a subsidiary of Paytm, to cease accepting new deposits from February 29, adding to previous restrictions imposed two years ago.
To address customer concerns, Paytm took to the social platform ‘X’ to provide clarifications:
Q. Will the NCMC Card stop working?
Paytm assured users that existing balances on their National Common Mobility Card (NCMC) would remain usable. The company stated its commitment to collaborating with other banks to enhance services, promising ongoing updates to ensure a seamless customer experience.
Q. Will the POS Machine/Soundbox stop working?
Merchant payment services, including Paytm’s Point of Sale (POS) machines and Soundbox services, were reported to be unaffected by the RBI decision. Paytm affirmed that these services would continue, and they would continue to onboard new offline merchants.
Q. Will FASTag stop working?
Paytm reassured FASTag users that existing balances on Paytm FASTags would continue to be functional. Similar to NCMC, Paytm expressed its commitment to strengthening partnerships with other banks, accelerating efforts initiated over the past two years.
Paytm clarified that despite the RBI restrictions, the Paytm app remains operational. The majority of services offered by Paytm are in collaboration with various banks, not limited to its associate bank. Paytm emphasized its commitment to accelerating collaborations with other banks in the coming years.
It is important to note that Paytm Payments Bank is 49% owned by Paytm (One 97 Communications), with the remaining 51% held by Paytm Chief Executive and founder Vijay Shekhar Sharma. The Paytm Payments Bank houses all of the parent company’s 330 million wallet accounts, indicating that the money held in these accounts is deposited with the payments bank.
As the situation unfolds, Paytm continues to assure its users of ongoing efforts to address concerns and provide uninterrupted services. For the latest updates, users are encouraged to stay informed through official communications from Paytm.
