The Reserve Bank of India, or RBI, has taken action against Paytm Payments Bank. This will impact how users can use their Paytm wallet starting February 29. Many Paytm users are wondering if their wallets will be frozen. This article explains simply what will happen to Paytm wallets and services after February 29.

The RBI has told Paytm Payments Bank not to add new customers from March 11, 2022. Now, on January 30, 2024, RBI has given more directions. Paytm Payments Bank will not be allowed to do many things starting March 1, 2024.

Will Paytm wallet be frozen?

No, your Paytm wallet will not be frozen. You can still use the money in your wallet. But some things will change-

• You cannot add more money to your wallet after February 29. This means no more top-ups.
• You can withdraw or transfer money from your wallet at any time without any limits.
• You can use the wallet to pay bills or other payments until the balance lasts.
• Sub-wallets for things like food, fuel, etc, also cannot get new money after February 29.

What about FASTag?

If you have a Paytm FASTag, it may stop working after February 29. So it’s best to get a new FASTag from other banks before that date. You can continue using the existing one till its balance ends.

Will UPI payments be impacted?

No, if your UPI is linked to other banks, RBI’s action will not impact UPI payments through the Paytm app. You can receive and send money through UPI as normal.

What if my Paytm account is with Paytm Payments Bank?

If your Paytm wallet or account is with Paytm Payments Bank, then-

• You can withdraw or transfer money anytime without limits.
• You can receive payments until February 29, but no new credits.
• Existing credits in pipeline deals will be settled by March 15.

The changes apply only to accounts with Paytm Payments Bank. Other services like loans, insurance, etc, provided by Paytm are not impacted.

So, in short, people can continue using the Paytm app and wallet. The only thing is no new money can be added to your wallet or Paytm Bank accounts after February 29. Existing balances can be used as well as transfers done. This is to comply with RBI’s directions to Paytm Payments Bank. People are advised to transfer balances to other accounts as a precaution.