After February 29, the RBI has prohibited Paytm Payments Bank Ltd (PPBL) from accepting any more deposits, credit transactions, or top-ups in any customer accounts, prepaid devices, wallets, FASTags, NCMC cards, etc. Interest, cashbacks, and refunds that can be credited at any time are the exceptions.
The restrictions will affect fresh deposits and credit transactions on the platforms. The new rule may also not allow new users from creating an account on the platform.

As for existing users, they will not be able to use their Paytm wallets, Paytm Fastags, or Mobility Cards. Mobility cards are basically transit cards that can be used for paying of shopping bills, parking fees, ATM withdrawals, metro and bus rides, fuel or food bills, and more.

Whatever funds you want to add to your Paytm Payment’s Bank, you can only do so until the last day of Feb. Post that day, you will not be able to add any money to the savings account.

Neither debit nor credit transactions, including those through wallets, will be permitted. However, customers are allowed to withdraw without any restrictions, as per the announcement.

You will not be able to make any money transfer or bill payments or UPI transactions using Paytm services after the said date.

The RBI claimed that persistent non-compliances and ongoing material supervisory concerns in the bank were revealed by its Comprehensive System Audit report and the external auditors’ subsequent compliance validation report, which called for additional supervisory action.

As a result, the RBI has declared that it will not permit any more credit transactions, deposits, or account top-ups. Customers may, however, remove or use any remaining funds from their accounts, including savings bank accounts, current accounts, prepaid cards, and FASTags, without any limitations.