Paytm vs Paytm Payments Bank all you should know after RBI Action

The Reserve Bank of India (RBI) has taken action against Paytm Payments Bank Limited. It has been banned from accepting any new deposits and making credit transactions. After February 29, Paytm Payments Bank will not be able to provide banking services to its customers. Ever since this news has come out, many people are confused. They are considering Paytm Payments Bank as Paytm app. Both are different things. If you are considering Paytm Payments Bank as Paytm app wallet present in your phone and are confused 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 present in your phone. However, the services of Paytm Payments Bank can be accessed in the app. Just like all the banks of the country open bank accounts of the customers, Paytm Payment Bank also provides zero balance account facility 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 Deposit can be withdrawn.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 banned Paytm Payment Bank from adding new customers.

What is Paytm App?

Paytm App is just like ‘PhonePe’ and ‘Google Pay’ apps. Paytm App can be used even without a 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, Paytm App is used by loading money in Paytm wallet or by directly linking 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 (PPBL) and One97 Communication Limited (OCL), which owns the Paytm app, are two different companies.
PPBL is a group company of Paytm, in which it has a 49 percent stake.