Is Paytm Payments Bank Limited (PPBL) Banned in India? What Will Happen to Paytm FASTag, Wallet & UPI?

As of 2025, Paytm is not banned in India, but the Reserve Bank of India (RBI) has restricted Paytm Payments Bank from accepting deposits, top-ups, or credit transactions after March 15, 2024, due to persistent non-compliance issues. This has led to confusion around the claim that Paytm is banned in India. 

In reality, only Paytm Payments Bank services are affected, while Paytm’s UPI, wallet, and merchant services continue to function through partner banks.

RBI restriction on Paytm Payments Bank?

The Reserve Bank of India (RBI) imposed strict restrictions on Paytm Payments Bank due to persistent non-compliance and supervisory concerns. As per RBI’s directive dated January 31, 2024, Paytm Payments Bank was barred from accepting new deposits, top-ups, or credit transactions in any form—across customer accounts, wallets, FASTags, NCMC cards, and other prepaid instruments—after March 15, 2024.

These RBI restrictions mean that:

• No new customer onboarding is allowed on Paytm Payments Bank.
• No deposits or top-ups are permitted after March 15, 2024.
• Only refunds, interest, and cashback credits are allowed post-deadline.
• Existing balances can still be used or withdrawn by customers.

All services such as AEPS, UPI, IMPS, and fund transfers linked with Paytm Payments Bank accounts were also disabled after the March deadline. However, Paytm’s UPI and wallet services remain active through its partner banks.

These actions by the RBI have caused confusion, leading many to believe Paytm is banned in India, but that is not true—the restrictions apply only to Paytm Payments Bank, not the core Paytm app or services.

Paytm Payments Bank Accounts Closed?

Paytm Payments Bank accounts are no longer active after March 15, 2024, for deposits and credits, following RBI's ban on top-ups and new customer activity. Available balance in Paytm Payments Bank account can be used, withdrawn and transferred by account holders until it is exhausted, even after the March deadline. 

Refund & Cashback 

Refunds and cashback will still be credited to your Paytm Payments Bank account even after March 15, 2024.

Sweep-in facility

If you use the sweep-in facility linked to another partner bank, the sweep-in amount can return to your Paytm Payments Bank account. However, the Rs. 2 lakh end-of-day balance limit still applies. Withdrawals remain allowed.

Direct Benefit Transfer and Subsidy

After March 25, 2024, account holders of Paytm Payments Bank were no longer able to receive any amount as Direct Benefit Transfer or government subsidy. To avoid disruptions, users were advised to update the linked bank account for such subsidies.

Bill Payment  

Mandated bill payments, such as electricity bills or OTT subscriptions, continued to be debited as long as there was balance in the Paytm Payments Bank account. However, deposits and credit services were discontinued after March 15, 2024.

What will happen to Paytm Wallet?

If you had a wallet with Paytm Payments Bank, you could continue using it to withdraw funds or transfer money to another wallet or bank account until the available balance was exhausted. However, after March 15, 2024, no further top-ups, credit transactions, or money transfers were permitted. Only cashback and refunds could be credited. For minimum KYC wallets, the available balance could only be used for merchant payments or refunded upon request.

Will Paytm UPI Work?

Paytm UPI was functional until March 15, 2024, for mandate transactions such as bill payments and OTT subscriptions. After the deadline, UPI and IMPS could only be used to withdraw funds from the wallet or Paytm Payments Bank account.

Will Paytm FASTag Stop?

Paytm FASTag users were allowed to use their FASTags up to the available balance. However, no further recharges or top-ups have been permitted after March 15, 2024. Users cannot transfer the remaining balance in the FASTag issued by Paytm Payments Bank. They may either use the available balance or close the FASTag and request a refund from the bank.

Will Paytm Payments Bank for Business stop working?

Merchants who were using Paytm QR Code, Paytm Soundbox, or Paytm POS machine could continue using the setup even after March 15, 2024. This could be done by linking it to another bank account or digital wallet. After the deadline, no new credits are allowed into Paytm Payments Bank accounts or wallets, except for refunds, cashback, sweep-in from partner banks, or interest.

Can I use NCMC Cards issued by Paytm Payment Bank?

National Common Mobility Cards issued by Paytm Payments Bank could be used by cardholders until the available balance was exhausted. After March 15, 2024, users can no longer load or top up funds on these cards. The existing balance cannot be transferred to another card. Users may either utilise the remaining amount or request a refund from Paytm Payments Bank.

Loans on Paytm Payments Bank Account?

EMIs for loans taken through the Paytm Payments Bank account continued to be debited until sufficient balance was available. However, after March 15, 2024, deposit and credit services have been discontinued. To avoid inconvenience, borrowers should link another bank account for future EMI payments.

Can i use Paytm Payments Bank as my salary account?

If you receive your salary in a Paytm Payments Bank account you must switch to another bank. Since March 15, 2024, deposits and salary credits are no longer permitted.

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