Know What Will Happen To Your Money If PayTm Payments Bank Gets Blocked

After the Reserve Bank of India (RBI) restricted the PayTm Payment Bank from accepting deposits, and new top-ups in any customer account, including wallets and FASTags, a large number of PayTm users started to worry about their hard-earned money. The bank regulating authority took action against Paytm's after its audit report was found not satisfactory.

The RBI's action impacted PayTm's business sharply as the fintech's share tanked nearly 20% on Thursday morning.

Soon after the panic among PayTM users was observed, the company came forward to give assurance that things would be normalized soon. PayTm assured users that they can continue using their existing balances for all types of transactions.

The company added that services like Paytm QR, Paytm Soundbox, Paytm Card Machine will continue to work as usual.

The statement shared by Paytm's parent company, One97 Communications (OCL), underlined that the PPBL has been taking necessary steps to comply with RBI rules and regulations. This includes working with the regulator to address their concerns as quickly as possible.

"OCL, as a payments company, works with various banks and not just with Paytm Payments Bank, for various payments products. OCL started to work with other banks since the start of the embargo. We will now accelerate the plans and completely move to other bank partners," Paytm said in its press release.

"Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited," the fintech added.

What will happen if PayTm Payments Bank Gets Blocked?

According to the experts, if PayTm Payments Bank services are terminated then the money left in the wallet will be transferred to the user's bank account.

However, PayTm has assured its users that all issues raised by the RBI will be resolved resolved before February 29 and people can continue enjoying the wallet services.