Paytm wallet, with over 300 million users, has revolutionized digital payments in India. However, the Reserve Bank of India’s recent directive asking Paytm Payments Bank to stop onboarding new customers from March 1, 2024 has left many users worried.
While existing customers can continue using services, they need a clear strategy to manage their money. Experts suggest users should not panic. As long as they make a plan, they can continue transactions smoothly and withdraw money from their wallets even after the deadline.
Continue Using Wallet Normally Till February End
This strategy involves loading money into the Paytm wallet and spending from it as usual until February 29, 2024. Users must remember that after this date, Paytm cannot onboard new customers or receive fresh deposits in Paytm Payment Bank accounts.
Users can keep adding and spending money from their wallet even after the February deadline. There are no restrictions on how long funds can remain in an existing wallet. Eventually, users should bring their wallet balance to zero before looking for alternatives.
Transfer Wallet Money to Bank Account
Risk-averse users who want to immediately limit exposure can stop adding money to their wallet and withdraw the existing amount.
Wallet balance can be easily transferred to a bank account linked to the wallet. Once the entire amount is withdrawn, the wallet balance becomes zero and can be closed if needed.
Users can also spend the wallet money as usual before transferring the remaining amount. The goal is to bring the wallet balance to zero well before February 29, 2024.
Stop Loading Wallet But Use Balance
Another approach is to stop adding fresh money into the wallet after the RBI directive, while continuing to spend the existing balance.
Users having merchant partnerships for accepting wallet money need not cancel these immediately. RBI’s restriction is only on new wallet deposits, not on spending from an existing wallet.
Users can continue withdrawing money from the wallet for day-to-day expenses until the balance is exhausted. There is no deadline for spending wallet money. The focus should be on avoiding further deposits while using the wallet normally.
Expert Tips
- Don’t panic. Make a plan to manage your wallet money before February 2024.
- You can load/spend from the wallet as usual until end February 2024.
- Withdraw wallet balance via bank transfer or spending. Goal is to make it zero.
- No limits on using existing wallet money, only on new deposits after February 2024.
- Explore alternatives like other wallets or UPI apps for future payments.
The bottomline is Paytm users need not worry if they make a clear strategy. There is enough time and flexibility to manage wallet balances. While RBI’s move creates limitations for Paytm, users’ payments can continue uninterrupted by planning carefully.