Paytm crisis: 'Don't fall for any rumour,' Vijay Shekhar Sharma clarifies after RBI extends deadline for services

Minutes after the Reserve Bank of India (RBI) extended the deadline for customers of Paytm Payment Bank to make deposits and credit transactions, Paytm founder Vijay Shekhar Sharma clarified that Paytm QR, Soundbox, card machines will continue to work even after March 15 and won't be affected by the RBI restrictions.

The central bank said deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. till March 15, 2024. The earlier stipulated timeline was February 29, 2024.

"Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15. The latest FAQ issued by RBI on point #21 clarifies it unambiguously. Do not fall for any rumour or let anyone deter you to championing Digital India !," Sharma posted on X on Friday.

RBI had put restrictions on Paytm Payments Bank and asked it to stop accepting fresh deposits in its accounts or popular wallets. Paytm Payments Bank, managed by One 97 Communications, was told by the regulator that it will not be able to take fresh deposits, facilitate credit transactions, or offer fund transfers, including Unified Payments Interface (UPI) facility after February 29. The deadline has been extended to March 15, 2024.

After RBI's January 31 directive, Paytm Payments Bank said it will be taking "immediate steps" to comply with the RBI's directions. OCL, as a payments company, works with various banks (not just Paytm Payments Bank), on various payments products, the fintech company said.

"We now will accelerate the plans and completely move to other bank partners. Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited. The next phase of OCL's journey is to continue to expand its payments and financial services business, only in partnerships with other banks," the statement read.

After the initial RBI statement, Sharma took to the social media site X (formerly known as Twitter), to thank customers of the company for their “relentless support". He also assured the audience that the Paytm app will continue working beyond February 29. “To every Paytmer, Your favourite app is working, 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 serve our nation in full compliance," he posted on X.

“India will keep winning global accolades in payment innovation and inclusion in financial services - with PaytmKaro as the biggest champion of it," Sharma added.

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