Is Paytm Payment Bank Safe ?
The reserve bank of India, imposed a ban on Paytm Payments Bank from offering banking services effective from March 2024. The announcement regarding the restrictions on the Paytm Payments Bank was made on 1st February 2024 on the day of the interim budget and created confusions among a large number of customers. As a consequence, all banking related transactions which are currently available on Paytm will be discontinued from 01st March 2024.
After 29th February 2024, the Paytm will not be permitted to provide banking services to the customer as explicitly stated by the RBI. The customers, who are using UPI services can continue doing transactions. However, the addition of balance to the Paytm wallet and the use of Fastags linked with Paytm will be discontinued. Customers have the option to withdraw or transfers their available balances in Fastags and Paytm wallet to another account before March 01, 2024. It is important to note that the balance available in Fastags will remain functional beyond February 2024.
The Apex bank has issued an order that Paytm Payments Bank has to stop accepting deposits from customers after February 29, 2024. The UPI linked with Paytm Payments Bank will no longer be able to do transactions from March 01, 2024. However, the founder, Mr. Vijay Sekhar Sharma expressed on his X handle (Former Twitter) that the favorite app will keep working beyond February 29 as usual.
According to the sources, the ban imposed by the RBI was due to the violation of the Banking Regulations Act, 1949. The stock price dropped from 761 to 609 on Wednesday post announcement of the ban, and today it closed at 487.20. The founder reassured on X handle that the customer’s money is safe with Paytm Payments Bank, and the company will continue providing services after February 2024.
Also read: https://newsheadline365.com/union-budget-2024-update/