RBI extends Paytm Payments Bank transaction curb deadline to March 15. Issues FAQ on Paytm

Paytm bank given until March 15 to stop accepting new deposits

February 16, 2024

RBI extends Paytm Bank’s lifeline to help customers

The Reserve Bank of India (RBI) on Friday extended by 15 days the deadline for stopping transactions at Paytm Payments Bank, part of One 97 Communications or Paytm. Customers now have time till March 15 to deposit money into their accounts, wallets, FASTags, and prepaid cards. RBI in a statement said that the extension aims to accommodate the needs of the payments bank’s consumers and merchants who may need more time to make alternative arrangements, emphasizing that the move was in the public’s best interest.

RBI also released an FAQ on the Paytm issue.[1]

“No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15 (extended from the earlier stipulated timeline of February 29), other than any interest, cashback, sweep in from partner banks or refunds which may be credited anytime,” RBI said on Friday.

However, the deadline to close nodal accounts of One97 Communications and Paytm Payments Services maintained by Paytm Payments Bank has not been extended. One97 Communications Ltd held a 49% stake in Paytm Payments Bank as of 31 March 2023. Paytm Payments Services is its subsidiary.

The RBI on 31 January directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after 29 February citing large-scale non-compliance with regulations and supervisory concerns.

The Central Bank reiterated that there were no restrictions on customers looking to withdraw or utilize balances from their accounts. “It is also directed that withdrawals up to their available balance should be facilitated by the bank from all accounts and wallets, excluding the ones that are frozen or lien marked by law enforcement or judicial authorities,” said RBI in a statement

“Further, it is directed that the bank shall facilitate a seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to such customers,” RBI added.

Reference:

[1] FREQUENTLY ASKED QUESTIONS – RBI

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