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Paytm will stop working after 29th Feb is a fake new

The Reserve Bank of India (RBI) announced on January 31 that it was shutting down Paytm Payments Bank due to repeated violations

By Ground Report 08 Feb 2024

New Update

Paytm will stop working after 29th Feb is a fake new

The Reserve Bank of India (RBI) announced on January 31 that it was shutting down Paytm Payments Bank due to repeated violations and serious regulatory issues. This led to some social media users spreading a false message that Paytm, the parent company, would also stop its services after February 29.

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However, Paytm clarified that the RBI order did not affect it and that they will continue offering payments and financial services products through its partnerships with other banks.

Paytm has clarified that most of the services offered by Paytm are in partnership with various banks and not just PPBL, and that it has been working with other banks since the beginning of the embargo. The company has also stated that it will accelerate its plans to expand its payments and financial services business, only in partnerships with other banks.

Paytm’s founder and CEO Vijay Shekhar Sharma tweeted: “To every Paytmer, Your favourite app is working and will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serve our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services – with PaytmKaro as the biggest champion of it.”

Paytm clarifies services, seeks guidance

The company has also debunked some common myths and misconceptions regarding its offerings, such as Paytm QR, Paytm Soundbox, Paytm Card Machine, UPI, and FASTag. It assures that its merchant payment services will not be impacted and that it can onboard new offline merchants as usual. It has also said that the Paytm UPI handle will continue without interruption until February 29, 2024, and that it needs guidance from both the NPCI and RBI on UPI acquiring.

Paytm has also informed that there won’t be any impact on user deposits in their savings accounts, wallets, FASTags, and NCMC accounts, and that they can continue to use the existing balances. However, after February 29, they cannot add incremental money. The company has said that it is working on effective solutions to ensure a seamless customer experience beyond this date and will keep the users updated.

The company has urged its customers and merchants to not fall prey to any false or misleading claims and to verify the facts from its official channels. It has also requested them to report any suspicious or fraudulent activities to its customer care or cyber cell.