The Reserve Bank of India (RBI) has taken action against Paytm Payments Bank Limited. He has been barred from accepting any new deposits and conducting credit transactions. After February 29, Paytm Payments Bank will not be able to provide banking services to its customers. Ever since this news came out, many people are in confusion. He is considering Paytm Payments Bank as Paytm App. Both are different things. If you are considering Paytm Payments Bank as the Paytm app wallet present in your phone and are in dilemma about the amount present in it, then do not worry. Read this report.
Your Paytm app is working. Most of the services offered by Paytm are in partnership with various banks (not just our associate bank).
We started our journey of working with other banks over the last two years, which we will now accelerate pic.twitter.com/SKYUUuDjSS
— Paytm (@Paytm) February 1, 2024
What is Paytm Payments Bank?
Because it has bank in its name, it is not the Paytm app on your phone. However, services of Paytm Payments Bank can be accessed in the app. Just as all the banks of the country open bank accounts for their customers, in the same way Paytm Payment Bank also provides the facility of zero balance account to its customers. All this happens virtually. Customers are also given a virtual debit card. After opening the account, money can be transferred to any account. Deposit can be withdrawn. Paytm Payments Bank also offers services like internet banking, mobile banking, UPI transactions. However, in 2022 itself, RBI had banned Paytm Payment Bank from adding new customers.
What is Paytm App?
Paytm App is similar to ‘Phone Pay’ and ‘Google Pay’ apps. Paytm app can be used even without Paytm Payments Bank account. You just have to register with your mobile number which is linked to any of your bank accounts and transactions keep happening in it. After logging in, the Paytm app is run by loading money into the Paytm wallet or directly linking the UPI. RBI has not taken any action on this service of Paytm.
Paytm App and Paytm Payments Bank are separate companies
Paytm founder and CEO Vijay Shekhar Sharma had said last year that Paytm Payments Bank Limited i.e. PPBL and One97 Communication Limited (OCL), which owns the Paytm app, are two separate companies.
PPBL is a group company of Paytm, in which it holds 49 percent stake.