On January 31, the RBI issued curbs on Paytm Payments Bank.

On January 31, the RBI issued curbs on Paytm Payments Bank.

RBI Extends Deadline for Paytm Payments Bank Operations, Releases FAQs

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The Reserve Bank of India (RBI) has granted an extension to Paytm Payments Bank Limited, pushing back the deadline for certain operations until March 15, 2024.

Initially slated to cease certain key operations after February 29, 2024, Paytm Payments Bank now has until March 15, 2024, to comply with regulatory directives, offering a brief respite to both the company and its users.

To offer clarity amidst the evolving situation, the central bank has released a set of Frequently Asked Questions (FAQs), delineating the services that will remain accessible for Paytm Payments Bank customers until the revised deadline.

Key Points from the FAQs:

Wallets, FASTags, and NCMC Cards: Users can continue utilizing these services until their balances are exhausted. However, no top-ups or recharges will be permitted after March 15, 2024. Customers are encouraged to obtain new FASTags or NCMC cards from alternative banks to avoid disruptions.

Bank Accounts: Withdrawals from savings or current accounts with Paytm Payments Bank will be permitted until March 15, 2024. Debit cards issued by the bank can also be used for withdrawals or transfers until the same date.

Deposits and Transfers: Deposits or transfers into Paytm Payments Bank accounts will be restricted after March 15, 2024, with exceptions for certain permissible credits like interest, cashbacks, sweep-ins from partner banks, or refunds. Existing deposits held with partner banks through ‘sweep in/out’ arrangements can be reverted to Paytm Payments Bank accounts within specified limits.

Merchant Operations: Merchants utilizing Paytm QR codes, soundboxes, or POS terminals linked to Paytm Payments Bank accounts will need to make alternate arrangements for receiving payments after March 15, 2024.

Salary and Government Benefits: Salary credits and subsidies/direct benefit transfers linked to Aadhar into Paytm Payments Bank accounts will cease after March 15, 2024. Customers are advised to make alternative arrangements for these services.

Automatic Payments and EMIs: Automatic payments for services such as electricity bills, OTT subscriptions, and EMIs will persist until the account balance is depleted. However, no further credits or deposits will be accepted after March 15, 2024.

This extension provides customers with additional time to make necessary adjustments and transitions as they navigate the evolving landscape of digital banking.

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