The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank Ltd to stop accepting deposits by 15 days, now set to March 15, instead of the earlier date of February 29.
This extension, according to the RBI, is aimed at safeguarding the interests of Paytm Payments Bank Ltd customers, including merchants, who may require additional time to make alternative arrangements. It also serves the broader public interest.
As per the RBI order, after March 15, 2024, Paytm Payments Bank Ltd will not be permitted to accept any further deposits or credit transactions, including top-ups, in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. Exceptions include interest, cashbacks, sweep-ins from partner banks, or refunds, which may be credited at any time.
However, customers will continue to be allowed to withdraw or utilize balances from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., without any restrictions, up to their available balance.
Banking services such as fund transfers (including AEPS, IMPS, etc.), BBPOU, and UPI facilities must continue to be provided by Paytm Payments Bank Ltd after March 15, 2024.
The RBI further instructed the termination of Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by Paytm Payments Bank Limited by February 29, 2024. Additionally, the settlement of all pipeline transactions in nodal accounts initiated on or before February 29, 2024, must be completed by March 15, 2024.
Moreover, the bank is directed to facilitate seamless withdrawals of customer deposits parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to the customers. Withdrawals up to their available balance should be facilitated by the bank from all accounts and wallets, except those that are frozen or lien marked by Law Enforcement or judicial authorities.
