[Bhargav7]

The amount of financial loss for businesses is significantly high. The swipe machines, sound boxes, and the rest of the infrastructure have to be changed. For end users, it is nothing more than a slight inconvenience.

I am all in for compliance. But pulling a plug on something of such a big scale is madness. I have no idea who is to blame - RBI for taking the extreme step or Paytm who were sleeping for 2 odd years.

In the end, RBI has nothing to lose. Vijay Shekhar Sharma made a massive fortune and personal wealth and he is cool. The small merchants who trusted Paytm and shareholders who got caught in the IPO will suffer.

[Sheel]

Originally Posted by DigitalOne

I just transferred ~500 from wallet to bank account. Went through smoothly.

I am trying too, as have some balance, but...can you share the procedure?

[poloman]

Paytm has around 8million Fastags issued which is huge. So either they will work to get the ban removed or these Fastags will be seamlessly moved to another bank and Paytm will remain a third party facilitator. We have time till Feb28 any way.

So we should not hurry to teardown Paytm fastag and close the same. New fast tag means 200-300 extra for issuing the new card. Why should we undergo this pain for no fault of ours.

If the ban is not lifted, we can expect some chaos at toll booths after Feb 28.

[Comrade]

Originally Posted by Bhargav7

The amount of financial loss for businesses is significantly high. The swipe machines, sound boxes, and the rest of the infrastructure have to be changed.

I think you are confusing between PayTM bank and PayTM gateway.

1. PayTM UPI txns can continue so I don't see how sound boxes and QR codes will be impacted. PayTM anyway moved from Wallet QR to UPI QR for all merchants long back.

2. Many companies like Pine Labs or mswipe, provide swipe machines as well as online payment gateway without they themselves being banks. PayTM can continue to offer these services.

3. The major impact of the RBI directive is for saving accounts, wallets and Fastags. This is impacting end customers more than merchants.

[AutoNoob]

I read this news yesterday 6pm. Almost went into shock. Wallet and FASTag were least of my concerns; was thinking of what to do with PayTM shares that I have in my DEMAT account.

Locked in -20% circuit since opening today. There will be many more lower circuits waiting to trip.

I may try to be scavenger and probably get more shares after it falls to the depths of Marina Trench, while praying someone takeover PayTM. JioFinance are you listening ??? :wink: :wink:

PayTM filed response-cum-status with stock exchange last night: [source: BSE India]

PPBL (Paytm Payments Bank Limited) is taking immediate steps to comply with RBI directions, including working with the regulator to address their concerns as quickly as possible... Depending on the nature of the resolution, the Company expects this action to have a worst case impact of Rs. 300 to 500 crores on its annual EBITDA going forward. However, the Company expects to continue on its trajectory to improve its profitability...

OCL (One 97 Communications Limited) started to work with other banks since starting of the embargo. We now will accelerate the plans and completely move to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited.

[saket77]

In my opinion, PayTM FastTag users should wait a little before rushing to close the accounts. There could be a way paved for for system based migration to other providers. And who knows, this might not be the end of road for PayTM as well.

By the way, I have 2 fastags with PayTM and love the fuss free basic wallet linked with the Tag.

[SideView]

Are there any other wallet based fasttags that is recommended by others?

[SourPai]

I am a very regular user of Paytm. Their wallet functionality is quite good, with Paytm QR codes at merchants, payments are a breeze. Paytm wallet even works at nearest petrol pump

I use credit cards to load Paytm wallets (Yes there are ways to bypass charges). There is no replacement for it as of now. I will mostly not close the Paytm fastag in hurry. Lets see how things pan out

[sumeethaldankar]

Originally Posted by Sheel

I am trying too, as have some balance, but...can you share the procedure?

There is a "transfer to bank" option in the Paytm app. I just transferred my remaining 35 Rs in the Paytm wallet back to my bank with no fees charged. Kindly check in the wallet section.

[saket77]

Originally Posted by saket77

In my opinion, PayTM FastTag users should wait a little before rushing to close the accounts. There could be a way paved for for system based migration to other providers. And who knows, this might not be the end of road for PayTM as well.

By the way, I have 2 fastags with PayTM and love the fuss free basic wallet linked with the Tag.

In continuation to this post of mine, there is a possibility that PayTM may create a small closed loop wallet serving only the Fastag. If they opt for this route, then this balance may not be used for any other purpose other than Fastag unlike the current wallet system. Still better than going for full blown migration and losing a big segment & client base.

[Raskolnikov.R]

Originally Posted by fhdowntheline

Or is it a witch hunt to force them to part ways with Chinese ownership.

To assuage your concern, there is NO witchhunt by anyone against anyone.

The fact is that Paytm failed to comply with the RBI directive. So it is Paytm who is at fault, and not RBI.

The central bank has come down on Paytm to protect the Common Man's interests – you and me.

The Reuters report succinctly explains the details: https://www.reuters.com/world/india/...ns-2024-01-31/

Excerpts from the news report:

1. The RBI had in 2022 asked the bank to stop adding customers. A subsequent audit revealed "persistent non-compliances and continued material supervisory concerns in the bank", the central bank said on Wednesday, without disclosing details.
2. The regulator used a legal provision that allows it to act in the interest of depositors, and did not specify a timeline for reviewing the restrictions imposed on the bank.
3. The regulator appears to have concerns about an "arms-length distance" not being maintained between the bank, One 97 and Paytm Payments Services, a source familiar with the matter said, speaking on the condition of anonymity as discussions with the regulator are private.
4. In March 2022, the RBI had ordered a comprehensive audit of the Paytm Payments Bank's systems but had not stopped all fresh business as it has done now.
5. In October 2023, the central bank fined the bank for failing to do adequate customer due diligence.

[BrakeDancer]

The RBI showing some spine, for a change. This was long overdue. I've personally never used their services as it always seemed one step above shady, and the interface seems to be a notch below the ones offered by GooglePay. There might be a temporary inconvenience for those who are used to it, but there are better alternatives in the market.

[AutoNoob]

RBI's Paytm Payments Bank Crackdown May Be Precursor To Revoking Licence
Source: NDTV

Reserve Bank of India's move to block fresh deposits at Paytm Payments Bank may have been in preparation of its licence cancellation, people in the know told NDTV Profit...

According to the people quoted above, an immediate cancellation of licence would have unduly disrupted the payments ecosystem. The RBI is likely waiting to ascertain the impact of such a cancellation, the people said...

The payments bank is allowed to approach the regulator for remedial measures.

[amavin]

Originally Posted by SideView

Are there any other wallet based fasttags that is recommended by others?

PhonePe has a tie-up with ICICI and you get issued an ICICI Fastag if you apply through their app. They charge Rs.499.xx. Park+ has a tie-up with IDFC Bank and is slightly cheaper I think.

I have 2 cars, 2 paytm fastags. I am going through the process of cancelling one of them before changing the other. Living near one of the NICE road entries makes Fastag is a necessity for convenience.

Totally unnecessary hassle for no fault of the end customer.

[saikishor]

Can someone post a TLDR version of this thread? I am too impatient to read the whole thing. Is it that Paytm is shutting down completely or is there something that I am missing?

My cousin has a Paytm fastag on his Kia Sonet. Guess I should tell him to keep an eye on this.