Hours after troubled fintech Paytm received a third-party application provider (TPAP) licence from the National Payments Council of India (NPCI), the company on March 15 issued a set of frequently asked questions (FAQs) for users just a day ahead of the closure of its Paytm Payments Bank (PPBL) arm.
This comes after the Reserve Bank of India (RBI) had directed PPBL to wind down services from March 15 after it was subjected to regulatory scrutiny due to non-compliance with KYC norms and other mandated processes.
“In light of the recent development, users may have questions regarding the functionality of Paytm app. Users and merchants must note that the Paytm app is working and will continue to do so even after March 15, 2024,” Paytm clarified in a statement on March 15.
In its list of FAQs, the fintech clarified that Paytm QR codes, Soundbox, and card machines also remain fully operational. “This ensures continued convenience for millions of users and merchants who rely on these services for their daily transactions,” said Paytm.
All other services on the Paytm app, including movies, events, travel (metro, flight, train, bus) ticket bookings, and more, will remain fully operational. Users can also continue to recharge their mobile phone, DTH or OTT subscriptions, and pay all utility bills (electricity, water, gas, internet) with ease directly through the Paytm app.
“We are expanding our financial services distribution platform in partnership with leading institutions. Paytm is committed to creating an inclusive next-generation financial ecosystem for our users across the country," said a Paytm spokesperson.
Paytm deals will continue to work uninterrupted after March 15. Users can seek all offers and discounts without any disruption. New insurance policies for bikes, cars, health, or paying premiums can be done using the Paytm app. Also, customers' investments in equity, mutual funds, or NPS with Paytm Money are working. Paytm Money Ltd is SEBI-regulated and fully compliant.
The UPI Autopay feature on the Paytm app will continue to work for the users. The settlement in the existing PPBL account will proceed without any issue until March 15, 2024. The balance in the account can be withdrawn even beyond March 15, 2024.
However, Paytm recommends that users must change the settlement account in the Paytm for Business app from Paytm Payments Bank Ltd to any of the other savings or current accounts held with other banks to ensure seamless settlements.
Paytm is already offering HDFC Bank FASTags and the FASTag recharge of other partnered banks on the Paytm app. However, users cannot purchase Paytm Payments Bank FASTags though they can recharge it before March 15 and use the balance until it is exhausted.
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First Published:
15 Mar 2024, 08:47 PM IST
Business NewsCompaniesNewsPaytm issues FAQs: What will work after March 15? Here’s what users must know
