RBI grants Paytm Payments Bank extension until March 15 to stop transactions; Read details

Published on: 17 Feb 2024 at 10:02 AM

Published by: thefactnews

The Fact News Service

New Delhi, February 17

The Reserve Bank of India on Friday gave a 15-day relaxation to Paytm Payments bank on accepting deposits. The last date will now be March 15 from the earlier date of February 29.

The central bank also issued a set of FAQs after several queries were sent by customers to the bank. The FAQs are as below:

1. Customers can continue to use, withdraw or transfer your funds from their account upto the available balance in the account. Similarly, they can continue use debit card to withdraw or transfer funds upto the available balance in the account.

2. After March 15, 2024, Customers will not be able to deposit money into their accounts with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.

3. Refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into their account even after March 15, 2024.

4. The existing Deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. Rs 2 lakh per individual customer at the end of day). Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024.

5. After March 15, 2024, customers will not be able to receive any such credits (like Salary) into the account with Paytm Payments Bank. It is suggested that customers make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.

6. After March 15, 2024, customers will not be able to receive any such credit (subsidy or certain direct benefit transfers) into account with Paytm Payments Bank. Please arrange to change linked account to another bank before March 15, 2024 to avoid any inconvenience or disruption.

7. Withdrawal/debit mandates (such as National Automated Clearing House (NACH) mandates) will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

8. Withdrawal/debit mandates through automatic UPI mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed.

Therefore, to avoid inconvenience or disruption, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

9. Auto debit mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements for setting up EMI payments through another bank before March 15, 2024.

10. EMIs registered with any bank other than Paytm Payments Bank can continue.

Correspondent (Bank Agent) can help you to withdraw money from your bank account upto the balance available in your account.

28. Any lien or freeze (full or partial) marked as per the instructions of any law enforcement or judicial authorities on the account/wallet of a customer with Paytm Payments Bank will continue to be governed by the orders passed by such authorities.

29. The bank (Paytm Payments Bank) has been directed to allow withdrawal or transfer to another bank account of the customer, upto the available balance in the account / wallets. Onboarding of new customers

30. The business restriction dated March 11, 2022, prohibiting Paytm Payments Bank from onboarding any new customers for any of its services continues to be in force. Hence, Paytm Payments Bank cannot onboard any new customers after March 11, 2022.

In response to the FAQs issued by the central bank, Paytm founder Vijay Shekhar Sharma posted on X, “Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15. The latest FAQ issued by RBI on point #21 clarifies it unambiguously. Do not fall for any rumour or let anyone deter you to championing Digital India