Two days after the RBI imposed restrictions on Paytm subsidiary, Paytm Payments Bank, the company assured customers their ‘money is safe' with the bank.
The RBI has stopped Paytm Payments Bank from accepting deposits in its accounts or popular wallets after February 29.
In a post on Platform X, Paytm CEO and founder Vijay Shekhar Sharma told users the app was fully functional and would continue to work as normal after February 29 too.
"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," he said.
To every Paytmer,
February 2, 2024
Your favourite app is working, 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…Paytm Payments Bank has also sent out emails and texts to customers. The email to customers states:
Dear Customer,
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account/Wallet from accepting new deposits or allowing credit transactions after February 29, 2024.
Please note that you will not be able to deposit or add money to your Paytm Payments Bank Account/Wallet after Feb 29, 2024. However, there is no restriction on the withdrawal of money from your existing balance even after Feb 29, 2024.
The directive does not impact your existing balances and your money is safe with the Bank.
For any further assistance, please reach out to us via the 24x7 Help section on the App - paytmbank.com/contact
Thanks and Regards,
Paytm Payments Bank Limited
“There will be no disruption on PG business and it will operate like earlier, now we offer merchants several other options, which is a very quick process," President and COO Bhavesh Gupta said in his post on X.
RBI, in a statement, stated its action followed "persistent non-compliances and continued material supervisory concerns in the bank.” The central bank said it had asked Paytm Payments Bank to stop adding new customers in March 2022.
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