In a recent development, the Reserve Bank of India (RBI) has granted a 15-day extension to Paytm Payments Bank for accepting deposits. The new deadline has been pushed to March 15 from the earlier date of February 29. This relaxation allows customers more time to manage their deposits and transactions with the bank.
According to the RBI release, after March 15, 2024, Paytm Payments Bank will not accept any further deposits, credits, or top-ups, except for certain transactions like interest, cashback, or refunds. However, customers will still be able to withdraw or utilize the balances in their accounts without any restrictions.
The central bank clarified that banking services such as fund transfers, including AEPS, IMPS, etc., will cease after March 15, 2024, except for facilitating withdrawals or utilization of available balances by customers. Additionally, the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by Paytm Payments Bank Limited are directed to be terminated by February 29, 2024.
Customers have been assured by the RBI that they can continue to use, withdraw, or transfer funds from their accounts up to the available balance. Debit cards can also be used for transactions within the available balance. However, after March 15, 2024, no new deposits will be accepted into Paytm Payments Bank accounts, except for certain permitted credits like interest, cashbacks, etc.
The RBI has issued a set of FAQs addressing various concerns of customers. These FAQs clarify that existing deposits maintained with partner banks can be brought back to Paytm Payments Bank accounts subject to certain limits. Withdrawal mandates, including those executed through automatic UPI mandates, will continue to be honored until the balance is available in the account.
Merchants using Paytm Payments Bank for transactions linked to other bank accounts can continue to do so even after March 15, 2024. However, merchants using Paytm Payments Bank accounts for transactions will not be able to receive any credits into their accounts after the specified date, except for certain permitted transactions.
In response to the RBI’s FAQs, Paytm founder Vijay Shekhar Sharma assured customers that Paytm QR codes, Soundbox, and EDC (card machine) will continue to work seamlessly even after March 15. He urged customers not to be swayed by rumors and to continue championing digital transactions in India.
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