RBI provides temporary concessions for Paytm Payments Bank clients
- ByStartupStory | February 17, 2024
The Reserve Bank of India (RBI) has extended a 15-day relaxation period for Paytm Payments Bank, allowing the bank to accept deposits until March 15, 2024, as opposed to the earlier deadline of February 29.
Customers can continue to utilize, withdraw, or transfer funds from their Paytm Payments Bank accounts until the available balance is exhausted. Additionally, debit card transactions for withdrawals or transfers are permissible within the available balance.
However, post-March 15, 2024, customers will no longer be able to deposit money into their accounts. Only specific credits such as interest, cashbacks, sweep-ins from partner banks, or refunds will be allowed.
Vijay Shekhar Sharma, the founder of Paytm, reassured customers regarding the continued functionality of Paytm’s services beyond March 15, stating, “Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15.
Furthermore, existing deposits with partner banks can be transferred back to Paytm Payments Bank accounts, subject to prescribed balance limits. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024.
Customers are advised to make alternative banking arrangements before March 15, 2024, as they will not be able to receive certain credits, such as salaries or subsidies, into their Paytm Payments Bank accounts post this date.
Withdrawal and debit mandates, including National Automated Clearing House (NACH) mandates and automatic UPI mandates, will continue to be executed until the account balance is depleted. However, no further credits or deposits will be allowed after March 15, 2024.
Additionally, customers are encouraged to close their Paytm Payments Bank wallets and transfer the balance to another bank account, especially for full KYC wallets. Refunds and cashbacks are permitted credits into the wallets even after March 15, 2024
For services like FASTag and NCMC cards issued by Paytm Payments Bank, customers are advised to make alternative arrangements before March 15, 2024, as top-ups or recharges will not be permitted after this date.
Despite the restrictions imposed, Paytm Payments Bank continues to allow certain transactions such as Bharat Bill Payment System payments and Aadhar enabled Payment System (AePS) withdrawals, up to the available balance in the accounts.
Furthermore, the directive prohibiting Paytm Payments Bank from onboarding new customers, which was issued on March 11, 2022, remains in force. Therefore, the bank cannot onboard any new customers for its services beyond this date.
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