Team-BHP - RBI asks PayTM Bank to wrap up all operations by March 15

I didn't find a separate thread regarding Paytm Payment Bank itself. So, I'm starting a new one. Mods, please close/merge as appropriate. This is for those who are using at least one Paytm product.

Here is a link from Deccan Herald. Here is the link to RBI press release.

Basically no deposits allowed after February 29, 2024. It seems many facilities such as UPI is also being removed on that date. So, if you need to remove any money from your Paytm wallet or Paytm Payment Bank account, do it before then. There is no clarity on Fastag (Paytm Fastag was the most popular on our forum). I submitted a request to close, they said it will take 7 - 10 working days. Since many will be closing the Fastag, I'm keeping my fingers crossed. I have no idea what is going to happen to their other products such as Paytm Money etc.

Quote:

Originally Posted by the_joker (Post 5710325)

There is no clarity on Fastag

I had posted the same news here.

No credits/deposits are allowed into any of the Paytm services like Fastag, Wallet etc after 29-Feb. Customers can use the existing balance in their wallets, fastag even after March 15th.

Major impact for Fastag users, as they have to get a new Fastag. Minor impact for wallet/UPI users (including me); we have to switch over to a different UPI app or start using a bank app.

Sleepless night for Paytm shareholders. Really tough time for Paytm employees:unhappy.

Recently, I had my windshield tinted and had to remove my Paytm Fastag. I applied for a replacement via the app, but during transit, it was returned to Paytm after reaching my location. The delivery agent mentioned that Paytm instructed them not to deliver the product and to return it. I lodged a complaint using the stupid robot on the app and am currently awaiting a response. I think it might be time for me to explore other Fastag vendors.

I wish Jio was in the Fastag business; having a single app for my SIM, broadband, and Fastag would be convenient for me.

However, I will genuinely miss Paytm. The user interface was easy for me, and I use Paytm for UPI transactions more frequently. Now, I'll have to revert to the standard Google Pay interface.

Tried to apply for a new one to test, and it seems that now they will be moving everything to HDFC.

RBI asks PayTM Bank to wrap up all operations by March 15-whatsapp-image-20240131-9.51.05-pm-1.jpeg

Can Fastag users share the deactivation process? I couldn't find any option in the help section. Also, I have 2 tags with total ₹400 reserved as security deposit. Is this amount refundable?

As someone who prefers to have everything in one place, their wallet-linked Fastag was very convenient. I'll miss PayTM.

EDIT:
Found it.
Go to Help & Support > Fastag > Chat with us > Queries related to updating profile > Close my fastag.
Photos of destroyed tag (basically removed from vehicle and cut in half) have to be uploaded. Security deposit amount is refundable.

:Shockked:

Quote:

Originally Posted by raptor_diwan (Post 5710355)

Recently, I had my windshield tinted and had to remove my Paytm Fastag.

Off topic:
Hi, was it easy for you to remove fastag from the windshield, I'm afraid that it will leave marks on the windshield.

Thank you.

I think the Paytm FASTAG customers will be on boarded into some other bank or NHAI by RBI.

So what exactly is happening to Paytm. I am a long time customer and used to top-up the wallet using their website from PC and used to do the pre-paid recharge using the toll free number before they had the Android or iOS app.

Edit: Share price of One 97 Communications Ltd will definitely be falling from tomorrow onwards.

Quote:

Originally Posted by Samurai (Post 5710407)

All those Paytm sound box too will stop working in a month. Man, what a mess!

I have never seen a popular company just killed off with an RBI directive.

There appear to be serious issues as stated in Point 2 of the RBI release - The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.

Some Info I could gather from the print media. Probably Tomorrow would be a bad day at dalal street :disappointed

Quote:

It is learnt that Paytm Payments Bank and its parent One97 Communications had also come under RBI scrutiny for purported lack of requisite information barriers within the group and data access to China-based entities that were indirect shareholders in the payments back through their stake in the parent company. The failure to address these concerns at multiple levels over an extended period led to the latest action by the RBI, it is learnt.

Although Antfin, an affiliate of Chinese conglomerate Alibaba, has been reducing its stake in One97 Communications, it still is a shareholder in the company. As of December 31, Antfin held 9.89 per cent stake in the company, as per stock exchange data. Given the frosty relationship between India and China over the past few years, Chinese investments in Indian companies have attracted intense scrutiny by Indian regulators.

Quote:

Originally Posted by self_driven (Post 5710374)

Can Fastag users share the deactivation process?

Go to Help & Support > Fastag > Chat with us > Queries related to updating profile > Close my fastag.
Photos of destroyed tag (basically removed from vehicle and cut in half) have to be uploaded. Security deposit amount is refundable.

Thanks. I am in the same boat, have 3 Fastag linked with Paytm. I think we can't apply for a new Fastag unless old one is closed. Am I right?

Instead of all these, can't they just transfer the Fastag to other providers of choice by giving some time? I am sure crores of Fastag will be with PayTM.

I have UPI lite device wallet from them. Will it also stop working? I don't know what will be left of Paytm after all of this.

Quote:

Originally Posted by the_joker (Post 5710325)

Basically no deposits allowed after February 29, 2024. It seems many facilities such as UPI is also being removed on that date. So, if you need to remove any money from your Paytm wallet or Paytm Payment Bank account, do it before then. There is no clarity on Fastag (Paytm Fastag was the most popular on our forum).

Going by this below para, I think FastTag and other wallets will be allowed to be usable till we run out of balances. The Feb 29th date doesn't apply to outgoing transactions for customers of these products.

2. Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, upto their available balance

Having said that, all Paytm FastTag users will have to shift to different vendor, unless there's a transfer of such accounts from Paytm to another bank/vendor. We'll know soon closer to the Feb 29th date.

I have a bad feeling about this- this can just kill the entire UPI economy. I hope RBI is cognizant of this because Paytm is synonymous with the UPI model more or less. I really wonder what's going on- is it some sort of re-monetization ? Or is it a witch hunt to force them to part ways with Chinese ownership.

Oh bother!

Can’t comment on what is happening behind the scenes, but

- I use only Paytm for all my UPI transactions
- All my cars have Paytm fastags

It’s going to be an unnecessary inconvenience to first cancel these existing tags and then redo KYC with a different provider. And to get used to another UPI app. Paytm was good. Sorted interface, zero fraudulent transactions, never a miss. I have never downloaded Google Pay or PhonePe!