Paytm Service : Will Paytm app continue or stop? Clear your confusion regarding its every service


Crores of users are in confusion after the strict ban of Reserve Bank of India on PayTM. Various types of news are circulating on social media. In such a situation, here today we are trying to clear all your doubts.

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The news of strict ban on Paytm has worried people. Some Paytm customers fear that their money might sink, while others are worried about what will happen next. Will Paytm app stop working?

Today, for millions of people in the country, transacting through Paytm, using various services like recharge, ticket booking, stock market, IPO, electricity bill, Fastag, credit card, loan, insurance, fixed deposit etc. is a part of life. has been made.

In this special story, we will definitely give you answers to all the questions related to Paytm’s services in the minds of customers. Along with this, an attempt is made to explain in simple language the story of Paytm’s 15 year journey, the allegations against it, the restrictions of RBI, the impact of RBI order on customers and what other options they have.

First understand how many types of services Paytm provides.

Paytm is a brand. It mainly provides three types of services – payment, merchant and financial services.

The name of Paytm’s parent company is One97 Communications Limited (PPBL). This company has an associate bank named Paytm Payments Bank Limited. One97 Communications holds 49 percent stake in PPBL, while Vijay Sharma holds 51 percent stake.

RBI has banned Paytm Payments Bank Limited and its services. PPBL provides digital banking services. In this, it provides the service of savings account, current account and fixed deposit in collaboration with associate banks. Paytm provides most of its services like wallet, UPI, Fastag through this bank.

Now understand what is the ban on Paytm

Reserve Bank of India has imposed strict restrictions on Paytm Payments Bank Limited (PPBL) due to suspicious transactions. On January 31, RBI said in its order – On March 11, 2022, under Rule 35A of the Banking Regulation Act, Paytm Payments Bank was instructed not to add new customers.

Now Paytm Payments Bank customers will not be able to deposit balance in their savings-current account, wallet and Fastag after February 29. Paytm will have to settle its nodal accounts by March 15.

Meaning, till February 29, customers can do all types of transactions through Paytm Bank. After this date they are not allowed to deposit or top up new money in their Paytm account. However, customers can use the money deposited through any medium till February 29 at any time as long as there is balance in their account.

There is a clear instruction from RBI that Paytm will have to provide full facilities to its customers to withdraw and use money. This facility is also available for those customers who have a savings, current or prepaid account of Paytm or use Fastag. This also includes National Common Mobility Card. This card is used for payment of travel fare or toll tax.

Why was this ban imposed on Paytm?

RBI has imposed this restriction due to suspicious transactions worth crores of rupees between Paytm Wallet and its bank. It is alleged that lakhs of accounts were opened in Paytm Payments Bank Limited without following KYC rules. Transactions worth crores of rupees took place through these accounts, which is much more than the fixed limit of prepaid instruments. Due to this, there is suspicion of money laundering.

Let us tell you, about 3.3 crore customers of Paytm Wallets made 24.72 crore transactions worth more than Rs 8000 crore till December 2023. These transactions have taken place for the purchase and sale of goods or services. Whereas 2.07 crore transactions were done to transfer money. This total is more than Rs 5900 crore.

How is Paytm’s digital bank different from ordinary banks?

Paytm Payments Bank is quite different from other banks. Money can only be deposited in Paytm Payment Bank. They do not have the right to give loans. This is a bank account in which money can be kept, but cash cannot be withdrawn from the ATM.

One97 Communications holds the Prepaid Payment Instrument (PPI) license which was used to launch Paytm Payments Bank. Generally, the payment made to shopkeepers goes into their Paytm payment account. Then from there it can be transferred to another bank. For this, Paytm gives credit points to its merchants.

Know how Paytm started

Vijay Shekhar Sharma is the son of a school teacher from Aligarh district in Uttar Pradesh. He laid the foundation of Paytm. In 1997, while studying engineering, he had created a website named, which was later sold for lakhs of rupees.

Vijay Sharma was greatly impressed after reading the success story of Jack Ma, the founder of Chinese company Alibaba. He saw how Alibaba Group is focusing more on smartphones instead of computer desktops. It was from here that the idea of digital payment came to his mind.

The full form of Paytm is ‘Payment Through Mobile’. Initially, Paytm provided the facility to Indian customers to buy vegetables, fruits, movie tickets and make payments through mobile. He planned to buy and sell in the marketplace through Paytm. An online platform was created for buying and selling everything from a needle to a mobile. After this, Paytm gradually kept adding all kinds of facilities and within no time Paytm became a big brand.

Paytm’s journey so far

According to the official website of the company, Vijay Shekhar Sharma started Paytm service in the year 2009. Since then, Paytm has become more than 30 crore customers in the country. Almost every year the company launches some new service.

Payment gateway service was started in 2012 under which customers got the facility to make online payments. Paytm wallet service was launched in 2014. From here the business started booming. In 2015, customers got the facility to make payment by scanning QR code. Facility to buy flight tickets for next year 2016 was also available.

In the year 2017, Vijay Shekhar Sharma launched one of his associate companies, Paytm Payments Bank Limited (PPBL). After this, Paytm also gave the facility to the customers to open a savings account. Paytm debit and credit cards also started being issued. Most of the banking transactions started being done through Paytm Payments Bank only.

This year, Paytm also opened the option of investing in gold and event booking. Also launched Fastag. In 2018, facility of giving loan through Paytm Postpaid and Paytm Money was provided.

Paytm Sound Box was launched in 2019. Merchants got the facility to hear how much payment was received on Paytm. Till now there was only option to transfer money from Paytm to Paytm account or wallet. All-in-one QR code facility available in 2020. The system of sending and receiving money through QR code of any company started.

In 2021, the facility to buy and sell shares was available by opening a Demat account on Paytm. Then in 2023, customers got Paytm UPI Lite service for small payments. Besides, the facility to link RuPay card on UPI was available and Paytm SBI card was also launched. In this way the company continued to reach great heights.

Will Paytm app be closed after February 29?

No, Paytm app will continue to function as before. RBI banned Paytm’s digital payment bank, not the Paytm app. The company has clearly said in a statement that Paytm and its services will continue to operate even after February 29. Because most of the services provided by Paytm are not only in partnership with the associate bank (Paytm Payments Bank) but also with other banks.

Will Paytm Payments Bank be closed?

Yes, if the loopholes are not rectified as per Reserve Bank of India then Paytm Payments Bank will be in trouble.

What will happen to Paytm debit-credit card?

If you have a debit or credit card of Paytm Payments Bank, its services will be affected. You will not be able to do any transaction through Paytm card. However, you will be able to use only the balance in your account till 29th February.

If I have bought Paytm Gold, is it safe?

Your Paytm Gold is completely safe. This has nothing to do with RBI restrictions, because gold investment comes under MMTC-PAMP. Yes, you will not be able to use Paytm Payments Bank account for any transaction.

What will happen to the loan and insurance taken from Paytm?

Loan and insurance taken from Paytm is safe. The reason for this is that loan and insurance services are available through other banks and NBFCs. Therefore it has nothing to do with Paytm Payments Bank.

Will mobile recharge and bill deposits continue through Paytm?

You can also pay mobile recharge, electricity bill and credit card bill through Paytm as before. There will be no restrictions.

Will movie tickets, bus tickets, railway tickets, flight tickets be booked?
Yes. All these are services of Paytm app. These services will continue like before.

If Paytm’s share price is continuously falling, should I buy it?

This is completely your own decision. If seen, Paytm has fallen by more than 50 percent in the last one year. RBI restrictions are being broken every day. Today the share price is at Rs 438. Experts are not yet giving advice on buying Paytm shares. He believes that the share price may go down further. SEBI has reduced its circuit limit from 20 percent to 10 percent.

Apart from this, which services will remain operational on Paytm?

Customers who have set Paytm Payments Bank account as their default account will have to update it by adding another bank account before February 29, 2024. After this you will be able to use all the services of Paytm app.

These include mobile recharge, DTH recharge, credit card bill, rent by credit card, water bill, cylinder booking, education fees, challan, metro recharge, hotel booking etc.

What did the owner of Paytm say on the RBI ban?

Paytm owner Vijay Shekhar Sharma claims that the company is running and will continue to work as usual even after February 29. Every challenge has a solution. The company works not only with Paytm Payments Bank but also with many banks on different payment products.

After the RBI ban, the aim of the company is now only to expand its business by partnering with other banks. Their effort is to continue providing all the same services to their customers with the help of other banks.

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