How will RBI's stringent curbs on Paytm impact your accounts? Here's what Paytm customers should know

The Reserve Bank of India, on January 31st, imposed stringent restrictions on Paytm payments bank. This includes a ban on onboarding any new customers effective immediately, as well as restrictions on accepting new deposits, credit transactions or offering any banking services after Febraury 29th.

But what do these restrictions on Paytm mean for your accounts and balances? Here's what you need to know.

What Paytm customers need to know

If you have any balance on your Paytm wallet, payments bank account, FASTags etc, you will be able to withdraw or use that amount without any restrictions upto the amount that you have as balance.

After February 29th, you will not be able to add money/top up your Paytm wallet, Payments bank account, FASTags, National Common Mobility Cards (NCMC)

However, interest, cashbacks or refunds can be credited to your accounts, wallets at any time.

After February 29th, you will not be able to avail of any banking related services from Paytm Payments bank. This includes funds transfer and UPI facility.

Why did RBI impose these curbs on Paytm?

RBI's action against Paytm Payments Bank follows a comprehensive system audit report and subsequent compliance validation report of external auditors. The reports revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI said in a statement.