Paytm Payments Bank on January 2 sought to reassure upset customers by sending emails and text messages assuring them that their money was safe, according to an NDTV report.
Days after the central bank ordered Paytm to stop all new deposit and credit transactions after the end of the month (February 29, 2024), the mass communication came as a way to assure customers of services, it said.
Prefaced as a “major update” the communication said: “Your money is safe at the Bank.”
Read also | Are you a Paytm Payments Bank customer? Here’s what you should know about an RBI order against a company
It also acknowledged that while as per RBI directives, customers may not be allowed to add money to their wallets after February 29, withdrawals will continue uninterrupted.
“There is no restriction on withdrawing money from your existing balance even after 29th February 2024. For further assistance, please contact us through the 24×7 help section of the App,” it read.
So far…
The Reserve Bank of India (RBI) on January 31 barred Paytm Payments Bank from accepting customer deposits from March 1, after an audit revealed “ongoing non-compliance” and “ongoing material control concerns”. This comes almost two years after the bath bank was restricted from onboarding new customers, a restriction still in effect.
Read also | RBI’s grip tightens: What’s ahead for Paytm after regulatory blow
They will not be affected because it supports the parent company (One 97 Communications) of the payment bank. Apart from that, UPI or unified payment interface transactions would also work in the app.
RBI has allowed such customers to extinguish their balances, but they cannot load these instruments with more money from March 1, 2024. There are no restrictions on withdrawal and transfer of funds from Paytm Payments Bank accounts.
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Published: 02 Feb 2024, 08:40 IST