What Happens To Paytm's Mobile Payment Services After RBI Crackdown?

One97 Communications, the operator of Paytm, clarified that the Reserve Bank of India's action will not impact user deposits in their saving accounts, wallets, FASTags, and NCMC accounts.

The company will continue to expand its existing relationship using third-party banks and not with Paytm Payments Bank Ltd., it said in an exchange filing.

This clarification comes after the RBI imposed stringent curbs on Paytm Payments Bank on Wednesday.

"The company has been informed that this does not impact user deposits in their savings accounts, wallets, FASTags, and NCMC accounts, where they can continue to use the existing balances," the company said in an exchange filing.

It would accelerate its plans to completely move to other bank partners.

"Going forward, OCL will be working only with other banks and not with Paytm Payments Bank Limited," it said in the exchange filing.

The Paytm Payment Gateway business for online merchants will continue to be available for existing merchants and remains unaffected after the RBI crackdown.

The offline merchant payment network offerings, too, will continue and the company will continue to be able to onboard new offline merchants.

Paytm also took to X (formerly Twitter) to clarify that customers can continue using FASTag, Paytm POS and Soundbox services, as well as existing balances on NCMC cards.

The regulator, on Jan. 31, directed Paytm Payments Bank to stop further deposits or credit transactions in any customer accounts after Feb. 29. It was also said that no other banking services apart from withdrawals or utilisation of balances are allowed after this date.

NDTV Profit previously reported that the RBI's move to block fresh deposits at Paytm Payments Bank may have been in preparation of its licence cancellation.