Paytm is expected to experience a continued decline in transaction volume on the Unified Payments Interface or UPI in the coming weeks as it is unable to onboard new users until existing ones are migrated to a new handle, according to sources to Business Standard.
The Reserve Bank of India had directed Paytm to transition existing users to a new handle following the directive for Paytm Payments Bank to halt transactions after March 15.
In February, the volume of Paytm Payments Bank transactions on UPI declined by 10.4% to 1.40 billion from 1.56 billion in January. The banking regulator initially instructed Paytm Payments Bank to cease operations from March 1, a deadline later extended to March 16.
Paytm users to get all services as before except for PPBL's wallet, Fastag
Paytm app users will continue to use all services like mobile and DTH recharges except for Paytm Payments Bank's offerings including wallet funds, Fastag and bank accounts, according to the company hit by RBI restrictions.
Paytm Payments Bank users will not be able to add any funds to their wallet and bank accounts but will be able to use the balance until it is exhausted, according to the RBI order.