Will Paytm app work after Feb 29? What will happen to Paytm QR, soundbox, UPI payments? All you need to know

The Indian fintech pioneer Paytm has been hit hard by the Reserve Bank of India for its “persistent non-compliance” with the central bank’s guidelines. Paytm had already been under the scanner of RBI, but the January 30 decision by the central bank has hit the fintech startup hard.

The RBI imposed a set of restrictions on Paytm Payments Bank that will come into effect on February 29. The new rules will affect new deposits and credit transactions on the platforms. It will also restrict new users from creating an account on the platform.

From what RBI's press release on the matter suggests, the Paytm wallets of all users will be affected, and so will be Paytm Fastags and mobility cards.

Nowadays if you open Paytm, the latest message on the top says,“Your Paytm app is working and will keep working as usual beyond Feb 29”. Paytm Founder and CEO Vijay Shekhar Sharma also said in a tweet that the app will keep working after Feb 29.

Here’s what will be affected and what will keep working:

Paytm app: What will be affected?

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

The users can continue to use their existing balance on the Paytm FASTag but will be able to further recharge it.

Similarly, with the Paytm Payments Bank wallet, users can continue to use the wallet but they will not be able to add the money to the wallet after February 29. However, there is no restriction on the usage of the existing balance from the wallet after the due date.

As per Paytm, the merchant services will not be impacted by RBI’s latest change in rules. Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, and Paytm Card Machine, will continue as usual, where it can onboard new offline merchants as well.

All UPI services will continue as usual without any interruption, said Paytm in its official blog.

Clarifying further, CEO Sharma assured: “On UPI acquiring, it needs guidance from both the NPCI and RBI and the discussions have started. So what and how will they appropriately guide us, we will adhere to that.”

As per Paytm, all the investments by users with Paytm Money are safe and the recent RBI directives on the Paytm Payments Bank won’t affect Paytm Money Ltd (PML) operations or their investments in Equity, Mutual Funds, or NPS. Paytm Money Limited is SEBI-regulated and fully compliant.

All other services on the Paytm app will remain unaffected and users can continue to use, Paytm as usual, now and beyond Feb 29.

(With inputs from agencies)