[MyLife_MyCar]

Official statement from Paytm - what will work and what won't:

[MahiDesai]

A very useful and apt thread indeed. The times in which we are living with plethora of options makes is difficult for many of us to decide and chose the right options for various needs of Finance Management.

Here is my take on how the accounts should be managed with least risk scenario. Suggestions welcome.

Disclaimer - I am no Financial Expert, but a simple common sensical approach to having different accounts for different purposes goes a long way in protecting your accounts and limit the exposure to Frauds.

1. The main income source should go into Salary Account, with Bank1

2. You may opt in to have Credit Card (Visa, MasterCard, International etc) with Bank1, in addition to your corporate credit card that you may have. Settling of this credit card will always happen from your Bank1 for easy traceability

3. You may plan to pay Housing Loan, Car Loan to be paid out of Bank1 Account as typically you'd have given these Bank details while taking loans.

4. Other Income Sources (as called in Form16), should all be part of your Account with Bank2. This should well safe-gaurded and not exposed to any other accounts, not even Bank1 account, except for receiving the funds (Savings) from it.

4. Ensure to maintain complet seperation between two accounts in two different Bank Accounts. Always practice to transfer the Funds from Bank1 to Bank2 and not even setup a Payee Account in Bank2 towards Bank1. This way, its just a mental idea that once you move the "monthly savings" into Bank2, its done and dusted. You are never going to touch it for wordly pleasures.

5. The proceeds from Bank2 will only go towards Investments, Stocks, PMS, FDs and so forth and they will all be appreciating factors that will improve your finances in Bank2

6. Create a 3rd Bank Account (for me PayTM Payments Bank Account served well, but now this is going to be pain), where you trasnfer onetime monthly 10K/15K from your Bank1 into it and they pay for petty cash payments, FasTag, Electricity/ Water bills and so on.

7. Any of the UPI Apps will have to be linked to this Bank3 Account and never link it with Bank1 with your UPI Apps. This will ensure max damage in cases of UPI Frauds will be limited to amount thats staying in your Bank3. This Frauds will never touch your Bank1 or Bank2

8. IMP POINT : With the advent of RuPay Credit Card with UPI cabaility, I think we can do away with Bank3 (relevant to this thread where PayTM Payments Bank is going to be shutdown).

9. This is in a way boon, and now you can Link the RuPay UPI Credit card (Virtual or otherwise) with the UPI Apps and pay all of your monthly petty cash amount in one go (post facto) every month, rather than transferring 10K/15K every month in advance from Bank1 to Bank3. Moreover, you can define Limits in your credit card applications, including decison to allow TAP!

As I said before, I am no finance expert, but just applying a common sense in mapping our payment exposure is limited at all levels.

Hope this helps!

[asingh1977]

Originally Posted by MyLife_MyCar

Official statement from Paytm - what will work and what won't:

It is still ambiguous for the Fastag services offered by Paytm. They are saying:

1. The tag will work beyond Feb 29th.
2. You cannot load money after Feb 29th.

How will it work, if no money can be credited to the pool for deduction. They have not taken up the scenario: date has crossed Feb 29th, and there is no money in wallet. What then?

[harry10]

Originally Posted by asingh1977

It is still ambiguous for the Fastag services offered by Paytm. They are saying:

1. The tag will work beyond Feb 29th.
2. You cannot load money after Feb 29th.

How will it work, if no money can be credited to the pool for deduction. They have not taken up the scenario: date has crossed Feb 29th, and there is no money in wallet. What then?

This is the real question for all of us Paytm fastag users.
I was about to opt for icici fastag but now will wait to see how this develops. Convenience of Paytm fastag is unmatched and if there is a way to continue then I will.

[binand]

Originally Posted by asingh1977

How will it work, if no money can be credited to the pool for deduction.

You load as much money as you want before 29/2, and use it till it is exhausted. Then you switch over to a different Fastag. Paytm themselves are facilitating issuance of HDFC tags I believe?

I have loaded enough money to last me through the first half of the year at least.

[asingh1977]

Originally Posted by binand

You load as much money as you want before 29/2, and use it till it is exhausted. Then you switch over to a different Fastag. Paytm themselves are facilitating issuance of HDFC tags I believe?

I have loaded enough money to last me through the first half of the year at least.

Why would you still want to bank with PayTM or let them hold onto your money? I have also not seen any official directive showing migration of their Fastag infrastructure to another entity. Better to move everything out of PayTM since it has folded over. I really doubt they are holding enough deposits to return back to all customers, once people make a run on the bank! I too am vested regarding Smart Bluecab and car tags, but what gives? And the logic, that millions will be affected, and the government will not leave us stranded. It has happened overnight with demonetization of currency. So better to limit exposure at a bare minimal, like 200-300 bucks.

Matter-of-fact: I would not even trust PayTM for UPI anymore. I doubt they will provide CC post 29th this month. It will be a mess. PayTM does not care for customers. If they had: this thread would never have existed.

[Selective]

PayTM has a WhatsApp channel and are providing regular updates on what works what doesn’t. They have published few videos for consumer awareness. Subscribe to the channel for regular updates.

https://whatsapp.com/channel/0029VaHTx1TDp2Q9GKJUDG30

[Aviator_guy]

Due to this Paytm fiasco and deadline for KYC, there is lot of confusion. In my hometown in MP, many toll operators have started forcing people to pay cash (and double charge) already!!

[BoneCollector]

Originally Posted by BoneCollector

I initiated the closure of both Fastags which I had from PayTM.

I've purchased 2 Fastags from ICICI Bank and they should be delivered in another 5-6 days.

I ordered the Fastags on 31st January and they were delivered yesterday (3rd February). PayTM shows that closure is initiated and will be done in 5-7 working days. So now waiting for them to close.

On another note, I have never purchased my car insurance from them but now they're asking me to renew my car insurance from them due expiry in February end. So the app indeed reads the messages and sends report to some server. Crazy.

[binand]

Originally Posted by asingh1977

Why would you still want to bank with PayTM or let them hold onto your money?

Because I want my Fastag to not stop working after 29/2 for the avoidable reason of "not enough balance".

Originally Posted by asingh1977

So better to limit exposure at a bare minimal, like 200-300 bucks.

The 5-figure balance I'm maintaining in my Paytm wallet for Fastag payments is the bare minimum that I need to, in my opinion.

[saildrive]

I happened to purchase PayTM Gold - again as a matter of convenience; sort of SIP as and when I could.

Let me know what you guys suggest. Should I sell whatever quantities I have with me? What do you think would happen once this Gold is liquidated? How will I be able to withdraw the money?

Hope to hear from those who would know some details on the above...

Thanks

[condor]

Was surprised when I was able to add some money to the wallet. I have been using the wallet for small purchases. Like it was BAU

Before this "top-up", I had some balance which I used up by getting a voucher - and used the voucher too. So now, even if the wallet stops working by month-end or March-15, I dont lose much.

Originally Posted by MahiDesai

As I said before, I am no finance expert, but just applying a common sense in mapping our payment exposure is limited at all levels.

The flow-chart wasnt clear, but posting my PoV about petty cash part. I dont want my bank statement showing me entries for small amounts. Hence I had been using the PayTM wallet for such petty expenses. The top-up used to be typically a 1000, and anything less than 100 used to be thru the wallet. This also helped me isolate small purchases from debit/credit/UPI

[Sheel]

They should have allowed to recharge the Fastag via other UPI's, would help lessen the chaos. I too have loaded some balance and since my preferred UPI is Phone PE, I will get whatever Fastag is the default one there after some time. Just hope, the Fastags continue to work if there is balance.

[Briarean]

Paytm Payments Bank issue and the actions taken by the Reserve Bank of India (RBI).

1. Background:

• Paytm, once hailed as the poster child of India's fintech revolution, faced scrutiny during RBI inspections.
• The RBI discovered several issues, leading to its recent actions against Paytm Payments Bank.

2. Probable Causes:

• Inoperative Wallets: Out of 35 crore Paytm Wallets, a staggering 31 crore were found to be inoperative.
• KYC Violations: Instances where a single PAN card was linked to thousands of accounts, and lakhs of accounts lacked proper Know Your Customer (KYC) compliance.
• Money Laundering Concerns: The bank violated KYC-anti money laundering rules, raising supervisory alarms1 2.
• False Compliance Reports: Instances of false compliance reports submitted by the bank.
• Financial Co-mingling: Paytm Payments Bank's financial and non-financial business intertwined with its promoter group companies, violating licensing conditions.

3. Data Sharing with China-based Entities:

• During annual inspections, the RBI found that Paytm's servers shared information with China-based entities indirectly owning a stake in the bank.
• This raised concerns and led to regulatory action.

4. RBI's Action:

• The RBI barred Paytm Payments Bank from offering core services (including accounts and wallets) from March, significantly impacting its operations.
• While not a license cancellation, this move restricts the bank's activities.
• Customers can still withdraw or utilize their balances without restrictions.
• Nodal accounts of parent company One97 Communications and Paytm Payments Services will be terminated by February 29

.
5. Impact on customers:

• Customer Balances:
  ○ Users can continue to use their existing balances in various Paytm instruments, including savings bank accounts, current accounts, prepaid instruments, FASTags, and NCMC accounts (Till February 29).
  ○ Withdrawals or utilization of balances are permitted without any restrictions, up to the available balance.
• Services Affected:
  ○ Paytm Payments Bank will no longer offer key services such as accepting deposits, top-ups, prepaid instruments, wallets, FASTags, and National Common Mobility Card (NCMC) after February 29.
  ○ Fund transfers, bill payments, and UPI facilities through Paytm Bank will also cease.
  ○ Paytm wallet services, dependent on Payment Bank, will face disruptions. Wallet deposits will be accepted until February 29, and customers can utilize the funds until depleted. Users can still transfer the wallet balance to any bank account without additional charges.
• Immediate Actions:
  ○ The nodal accounts of One97 Communications and Paytm Payments Services will be terminated by February 29.
  ○ Settlement of pipeline transactions and nodal accounts initiated on or before February 29 should be completed by March 15.

.
5. Conclusion:

• The situation underscores the importance of regulatory compliance and transparency in financial institutions.
• Paytm's journey from fintech pioneer to facing RBI restrictions serves as a cautionary tale for the industry.

6. Source(s)
https://indianexpress.com/article/ex...fects-9137548/
https://www.cnbctv18.com/finance/pay...y-18970171.htm
https://www.firstpost.com/business/e...-10459601.html
https://economictimes.indiatimes.com...9.cms?from=mdr
https://m.economictimes.com/news/how.../107312266.cms
https://www.business-standard.com/fi...0100200_1.html
https://www.firstpost.com/explainers...-13676522.html
https://www.rbi.org.in/Scripts/BS_Pr...spx?prid=57224

[shancz]

Originally Posted by BoneCollector

On another note, I have never purchased my car insurance from them but now they're asking me to renew my car insurance from them due expiry in February end. So the app indeed reads the messages and sends report to some server. Crazy.

I think reading SMS isn't very likely unless the permission is explicitly given and even then reading unrelated messages from the inbox isn't feasible.

You don't need to purchase insurance but if you entered your car's number they would internally link it to your profile and hence show you such alerts by pulling data for that registration number from either Vaahan or a service available to insurance providers. Obviously I am unaware of what happens in the back end.
I once recharged a friend's Fastag and I am getting homepage alerts for his expired insurance


I have been a happy Paytm wallet, Fastag and PPBL user and it was perfect for my usage but with the revelations and the looming revamp/reset/closure of Paytm inevitable, I don't have a single solution which does all that in one app and is equally popular.
I hope they eventually come back after sorting everything out but for now I am still looking for a solution which provides a wallet, bank, Fastag and UPI in the same app with fingerprint security for payments instead of entering the PIN in full public view, let alone the ease of the swipe.