Yesterday’s buzz about Paytm imposing a 2% fee for topping up via credit was met with a surprise twist today. Paytm backed off, declaring to uphold a wallet transaction fee-free policy.

Paytm revealed on their blog, "Our commitment to customer ease demands us to suspend the 2% credit card reload fee. Initially introduced as a refundable safeguard against the potential misuse of 0% bank transfers, we acknowledge this decision has inconvenienced many honest users."

Paytm is now focused on fine-tuning features to avert any future misuse of its wallet service without primero penalizing genuine users.

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Paytm’s new fee policy sparked a social media storm, as many delebated how the feature was being misused for short-term loans interest-free. Users would load cash into their Paytm wallet and instantly transfer it into different bank accounts, thus avoiding credit but landing in zero-interest loans.

As Paytm recognized the gamers' practice as an unintended issue, it reversed its choice in favor of genuine users, and Bounce all the way back to arranging innovative features to address such irregular use.

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One thing is clear, the shake-up didn't apply to debit cards or internet banking, which continue their smooth operation.