UPI service on Paytm will continue to work as normal as the company is working with other banks to make changes in the back-end for continuity of its services, the fintech firm said on Monday.
Paytm UPI service falls under the Paytm Payments Bank, which was recently restrained by the Reserve Bank of India from taking money from customers after Feb. 29.
"UPI on Paytm will continue to operate as normal. We are working in the back end to connect with other banks to ensure seamless continuity of service. Users are not required to do anything additional," a Paytm spokesperson said.
According to the National Payments Corporation of India (NPCI), PPBL was the top UPI beneficiary among banks in December, with 283.5 crore transactions it received during the month. It had remitted 41 crore transactions in the period.
Customers made 144.25 crore transactions on the Paytm Payment Bank App worth Rs 16,569.49 crore in December.
Paytm's Bharat Bill Payment Operating Unit (BBPOU) business also falls under PPBL. The service facilitates bill payments of utilities, school and university fees etc.
When asked about the impact of the RBI move on bill payments through BBPOU, a Paytm spokesperson said, "Please be informed that Paytm users can continue using the App for all bill payments and recharges, like always. Paytm continues to support a wide range of payment options for your convenience."
The RBI on Jan. 31 directed the Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after Feb. 29.
Withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, are to be permitted without any restrictions, up to their available balance.
Paytm Wallet users can continue to carry on transactions till Feb. 29. However, after Feb. 29, they will be able to use their existing balance till the time it is exhausted, but cannot add any money to their account.
The same rule is applicable to PPBL Accounts, Paytm wallet-linked services like Fastag, and National Common Mobility Cards that are used for travel in the metro and other public transport.
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