RBI extends deadline for Paytm Payments Bank restrictions till March 15

The Reserve Bank of India (RBI) has extended the deadline until March 15, 2024, given to Paytm Payments Bank Ltd (PPBL) regarding restrictions on offering incremental banking services.

Earlier, RBI stated that "no further deposits, credit transactions, or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29, 2024, other than any interest, cashback, or refunds that may be credited anytime."

The 15-day extension has been given keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements.

The action was taken because of the comprehensive system audit and subsequent compliance validation report of the external auditors, which revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action.

The RBI also came out with frequently asked questions (FAQs) on the business restrictions imposed on Paytm Payments Bank. We bring out a few of the important answers provided by the RBI on the issue.

For a bank account with Paytm Payments Bank

• Customers can continue to use, withdraw, or transfer funds from their account up to the available balance in their account. Similarly, they can continue to use their debit card to withdraw or transfer funds up to the available balance in their account.
  
• After March 15, 2024, customers cannot deposit money into their account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-ins from partner banks, or refunds can be credited.
  
• Auto debit mandates (like EMIs) will continue to be executed until a balance is available in the account. However, after March 15, 2024, credit or deposits in the accounts will not be allowed.

For Paytm Payments Bank wallet

• Customers can continue to use, withdraw, or transfer to another wallet or bank account up to the balance available in the wallet.
  
• After March 15, 2024, customers cannot top up or transfer money into the wallet or receive any credits, other than cashback or refunds, in this wallet.

Also read: Paytm mat karo?