Initiation
The Reserve Bank of India (RBI) has just pushed back the deadline for Paytm Payments Banks’ services to March 15, extending it from the previous date of February 29. This adjustment follows the central bank’s restrictions imposed on Paytm’s banking arm concerning deposits and top-ups.
RBI’s Directives
RBI’s directive barred Paytm Payments Bank from accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29, 2024. However, this deadline was later extended to March 15, allowing customers more time to adjust to the changes.
FAQs Released by RBI
To offer clarity to customers and merchants, RBI released detailed FAQs outlining the alterations in banking services, UPI, wallet, and FASTag operations linked to Paytm Payments Bank.
Key Changes
Effective March 15, 2024, customers and merchants will be restricted from making deposits or top-ups into their accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards (NCMC).
The central bank emphasized that no further deposits or credit transactions would be allowed after the stipulated date, except for certain exceptions like interest, cashbacks, sweep-ins, or refunds.
Wallet Usage
Customers possessing wallets with Paytm Payments Bank can continue to use, withdraw, or transfer money up to the available balance. However, they will not be able to top-up or receive money into the wallet after March 15, 2024, except for cashbacks or refunds.
Closure and Transfer
Customers have the option to close their wallets and transfer the balance to another bank account maintained with another bank, subject to certain conditions and KYC requirements.
UPI Payments
While BBPS payments can still be made using Paytm Payments Bank accounts, users are advised to make alternative arrangements for BBPS before March 15, 2024. Additionally, the feasibility of UPI payments into Paytm Payments Bank accounts post-March 15 remains uncertain.
After March 15, 2024, am I able to withdraw funds from my Paytm Payments Bank account using UPI/IMPS?
Absolutely. You can withdraw funds from your Paytm Payments Bank account through UPI/IMPS, as long as the balance in your account permits it.
Decision
The revised guidelines by RBI necessitate a thorough understanding for users of Paytm Payments Bank. With the extended deadline to March 15, customers and merchants must adapt to the changes to ensure uninterrupted banking services.
