Fact Check: Paytm is not shutting down; it will remain operational even after February 29

Hyderabad: On January 31, the Reserve Bank of India issued a notice mandating the closure of Paytm Payments Bank against persistent non-compliance and ongoing material supervisory concerns within the bank.

Against this backdrop, several social media users have shared a post claiming that Paytm is shutting its operations after February 29. The Hindi text in the post, when translated, says, “RBI has put a ban on Paytm company. It will not be able to make any payment after February 29. In this ban, services like Paytm Wallet, Paytm bank and FastTag have been banned. So, share it with your friends.”

Fact Check

NewsMeter found that the post is misleading.

Taking to X, on February 1 Paytm released an update that, “Paytm Payments Bank Limited, an associate of Paytm receives RBI directions. Paytm to expand its existing relationships with leading third-party banks to distribute payments and financial services products.”

Moreover, Paytm's founder, Vijay Shekhar Sharma, on February 2 tweeted that the app will be working even beyond February 29.

“To every Paytmer, Your favourite app is working and will keep working beyond 29 February as usual. I with every Paytm team member salute you for your relentless support. For every challenge, there is a solution and we are sincerely committed to serving our nation in full compliance. India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it,” he tweeted.

According to the Paytm website, the Paytm app is working and will keep working as usual beyond February 29.

It further stated that the Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account/Wallet from accepting new deposits or allowing credit transactions after February 29. However, there is no restriction on the withdrawal of money from your existing balance even after that.

Services like payments of bills and recharges, movie tickets and other financial services would remain operational even beyond February 29 as usual. There will be no restriction on UPI transactions or Paytm QR codes.

Soundbox and Paytm card machines all offline merchant payment networks would work exactly as earlier.

The directive would not impact your existing balance in your account or wallet and your money is safe with the bank.

The same was reported by Hindustan Times and Outlook on February 3.

Hence, it is evident that RBI has taken action against Paytm Payment Bank Limited on January 31. Under this, bank services will be banned after February 29, but it will not affect UPI payments. Bills can be paid with the help of other bank accounts.