Paytm app to stop working after February 29? RBI provides big update

The RBI's crackdown on Paytm Payments Bank last month has put Paytm in the news. In just two days, the share price fell by over 15%, settling at Rs 419.85 on the BSE. After February 29, 2024, Paytm Payments Bank Limited is prohibited by RBI regulation from accepting deposits or top-ups into any customer account, prepaid device, wallet, or Fastag. As a result, users using Paytm's bank account were having more problems. Numerous users have voiced concerns about whether the QR payments app will continue to function after February 29.

There are a lot of questions people have right now. While many think of Paytm Payments Bank and Paytm App as one, many others are unsure about whether Paytm App will close after February 29 due to the RBI's ban on Paytm Payments Bank.

Recently, the RBI released a significant statement on the subject. Following the Monetary Policy Committee (MPC) meeting, RBI Deputy Governor Swaminathan J stated, "It is important to clarify that this action is against Paytm Payments Bank (Ban on Paytm Payments Bank) and should not be associated with the Paytm app. This means the action will not affect the Paytm app. 

In response to a question about whether other banks could collaborate with Paytm Wallet, he stated that it was a business decision and that banks would need to follow the procedures outlined in the policy that their director bank had approved. "I am sure they will finish the required steps if they wish to form a partnership," he said.