Paytm Money: Will Paytm Bounce Back? Experts Slash Target Price, App Affected? -  RBI's Move Against Paytm: Stock Market Hit, Users Concerned

The recent RBI action against Paytm has sent shockwaves through the stock market, leaving many investors trapped as the stock enters a lower circuit. With Paytm's significant presence in the public market, questions arise about the extent of RBI's actions and its impact beyond stocks. Here's what users need to understand about the services affected by this move.

Understanding RBI's Action

RBI's intervention alleges legal violations, resulting in a ban on Paytm Payments Bank Ltd from processing further deposits, credit transactions, or top-ups in various customer accounts and services, effective after February 29. Users can utilize funds in their accounts until this date, but services such as prepaid devices, wallets, FASTags, NCMC cards, etc., will cease afterward due to persistent compliance issues highlighted in audits.

How Users Are Affected

Paytm Wallet:
After February 29, adding funds to Paytm Wallet via Paytm Payments Bank will cease. However, users can still use existing balances to settle bills.

FASTag:
Users with Paytm FASTag need not worry as transactions linked to Paytm Wallet remain unaffected post-February 29.

UPI Transactions:
While UPI transactions will still be possible through other bank accounts, Paytm Payments Bank won't be accessible for such transactions after February 29. Users with UPI IDs linked to Paytm Payments Bank will need to switch to alternative accounts.

Paytm Money:
Fortunately, the RBI's action doesn't extend to Paytm Money app, as its services fall under SEBI regulations. Users can continue buying and selling stocks and mutual funds through the app without disruption.

Impact on Paytm Shares

The RBI's move has led to a decline in Paytm shares, with the stock entering a lower circuit today following yesterday's after-hours activity. Analysts, like Jefferies, have revised their price targets downward, suggesting potential challenges for Paytm shares in the near future.

In summary, while RBI's actions against Paytm have rattled investors and raised concerns, users can navigate the situation with an understanding of how various services are impacted.

RBI Directs Paytm Payments Bank to Halt Deposits and Transactions from March 1