RBI action against Paytm: How to secure your funds

A press statement by Yogesh Dayal, Chief General Manager at the Central Bank, stated that customer PayTM accounts, including prepaid instruments, wallets, FASTags, and NCMC cards, will not permit additional deposits, credit transactions, or top-ups post-February 29. However, credits such as interest, cashback, or refunds may still be processed at any time.

Furthermore, the RBI indicated that post-February 29, 2024, the bank will cease to provide banking services, including fund transfers, operations under Bharat Bill Payment Operating Unity (BBPOU), and Unified Payments Interface (UPI) services.

The nodal accounts of the parent company, One97 Communications and Paytm Payments Services, should be terminated at the latest by February 29, as directed by the RBI.

The settlement of all pipeline transactions and nodal accounts—concerning all transactions initiated on or before February 29—must be completed by March 15, as no transactions shall be permitted after, the central bank added.

With more than 100 million know-your-customer (KYC) verified customers and the largest issuer of FASTag, with over 8 million issued, this news has sent shockwaves, affecting existing Paytm wallets, Paytm Fastags, and mobility card users.

Keeping this in mind, the RBI allowed the withdrawal or utilisation of balance amounts by customers “without any restrictions, up to their available balance” from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, with interest, cashback, or refunds still being credited to the customers’ accounts.

How do I withdraw money from Paytm Payments Bank?

Share the details with the Paytm Payments Bank Agent to withdraw cash using one’s Aadhaar number and bank name.

How do I transfer money to a bank account from Paytm Payments Bank?

To transfer money from your Paytm Payments Bank account to another bank account, you can use the Paytm app on your device. Here’s a step-by-step guide on how to do it:

• Open the Paytm app on your device and log in to your account.

• Go to the ‘UPI Money Transfer’ section and then select ‘To Bank A/c’.

• Choose one of the options provided (bank account details, UPI ID, mobile number, or to yourself) to send money to the recipient’s or your bank account.

• Enter the amount you want to transfer.

• Select your preferred payment method and click ‘Pay’.

• Enter your passcode or PIN to complete the transaction.

How do I transfer money from my Paytm wallet to a bank account?

To transfer money from your Paytm Wallet to a bank account, follow these steps:

1. Launch the Paytm app on your device and log in.
2. Tap on ‘Wallet’ in the app.
3. Choose ‘Transfer To Bank’: This option allows you to transfer money to a bank account.
4. Enter Amount and Bank Details: Input the amount you want to transfer along with the bank account details where you want to send the money.

How do I withdraw money credited to FASTag?

Following the latest RBI directive, Paytm FASTag users will be unable to make new deposits or top-ups into their accounts after February 29, 2024, though one can still use the FASTag account without restrictions.

However, it’s not possible to withdraw money from the FASTag, but all unused balances, along with the security amount, can be refunded back to your account after the successful deactivation of the FASTag and closure of the wallet.

Here’s how one can deactivate their Paytm FASTag account:

1. Log in using the mobile number linked to your FASTag account.
2. Use the search bar to find ‘FASTag’ and select the ‘Manage FASTag’ option under services.
3. Select the FASTag account linked to PayTM and click on ‘Close FASTag’.
4. Select the appropriate option to indicate you want to close your FASTag and deactivate.
5. Post-deactivation or closure of the account, money will be transferred to the linked bank account.

Facing scrutiny since 2018, the RBI’s action comes nearly two years after Paytm Payments Bank failed to meet the directions of stopping new customers from signing up.