"We are suspending 2% charge on credit cards for adding money to wallet keeping users' convenience in mind," the digital wallet player said in a blog post. "We are conscious that this move caused inconvenience to a large segment of our users, including those who are using their credit card for genuine transactions."

Earlier Paytm had levied a 2% fee for adding money to Paytm wallet using credit cards. This it said was a result of multiple users using Paytm to get free credit by using credit cards to top up their digital wallets and transferring the money back to their bank accounts at zero transaction cost.

The wallet said that it would introduce new measures to prevent misuse. "We will introduce new features to prevent credit card misuse in add money," the Paytm blog post said.