Paytm plummets 20 per cent after RBI order!

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Paytm’s stock plummeted 20 per cent to Rs 609 apiece in the opening trade on Thursday, January 1, 2024. The RBI had on Wednesday barred Paytm Payments Bank from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024. The Reserve Bank’s action against Paytm Payments Bank Ltd (PPBL) follows a comprehensive system audit report and subsequent compliance validation report of the external auditors.

But inspite of all the restrictions imposed, customers can always withdraw money from their wallet anytime. RBI has not put any deadline beyond which customers cannot withdraw money lying in their wallet. But according to the notification, customers will not be able to credit any money in their wallet after February 29, 2024. Neither will they  be able to top up their smartphone balance using Paytm’s wallet balance. Those who were using National Common Mobility Cards (NCMC) for travelling in metros, even, they will not be able to top up their NCMC balance using Paytm wallet. Even your FASTag transactions cannot be iniated via the fintech’s wallet. In a nutshell, you will be unable to use Paytm wallet for any transactions after February 29, 2024, except withdrawals.

If your wallet is already loaded with cash you don’t need to worry. You don’t have to rush and withdraw all your wallet balance because RBI has clearly stated that Paytm cannot block customers from making withdrawals from wallet.

You can still credit money in Paytm’s wallet till February 29, 2024. But it won’t make any sense as beyond this date, you will not be able to use the wallet for making any transactions other than bank transfers.

Apart from wallet transaction restrictions that come into effect after February 29, the RBI has also barred the fintech from opening any type of bank accounts with Paytm Payments Bank on immediate basis. Those who have any type of bank account already opened with the payments bank can always withdraw money anytime. Again, there is no deadline on withdrawals from bank accounts as well.

If your fixed deposit expiry date is beyond February 29, 2024, then, you don’t need to worry, your deposits along with interest dues will be credited to the bank account or wallet whichever you had mentioned at the time of opening of the account. And from there, you can anytime remit the deposits to your other bank accounts. There will not be any restrictions on any withdrawals from any financial product of Paytm, whatsoever.