The Reserve Bank of India has announced an extension of the deadline for the operations of Paytm Payments Bank Limited. Previously, the RBI had instructed Paytm Payments Bank to halt certain key operations after February 29, 2024. However, this deadline has now been extended to March 15, 2024, providing a brief reprieve for the company and the users.
In a bid to provide clarity amid the ongoing crisis, the RBI has released a set of Frequently Asked Questions (FAQs) outlining the services that will remain functional for Paytm Payments Bank until the revised deadline of March 15, 2024. Major announcements are as follows –
What happens to wallet services, FASTags, and NCMC cards?
Wallet services, FASTags, and NCMC cards issued by Paytm Payments Bank can be used until the balance is exhausted, but no top-ups or recharges will be allowed after March 15, 2024. Customers are advised to procure new FASTags or NCMC cards from other banks to avoid inconvenience.
What happens to bank accounts with Paytm Payments Bank?
Customers can continue to withdraw money from their savings or current accounts with Paytm Payments Bank until March 15, 2024. Debit cards issued by Paytm Payments Bank can still be used for withdrawals or transfers until the same date.
What happens to deposits and transfers?
Deposits or transfers into Paytm Payments Bank accounts will not be permitted after March 15, 2024, except for certain permissible credits such as interest, cashbacks, sweep-ins from partner banks, or refunds. Existing deposits maintained with partner banks through ‘sweep in/out’ arrangements can be brought back to Paytm Payments Bank accounts within specified limits.
What happens to business operations for merchants?
Merchants using Paytm QR codes, soundboxes, or POS terminals linked to Paytm Payments Bank accounts will need to make alternative arrangements for receiving payments after March 15, 2024.
Salary and government benefits?
Salary credits to Paytm Payments Bank accounts will cease after March 15, 2024. Customers are advised to make alternative arrangements. Subsidies or direct benefit transfers linked to Aadhar will also not be credited into Paytm Payments Bank accounts post the mentioned deadline.
Automatic payments and EMIs?
Automatic payments for services such as electricity bills, OTT subscriptions, and EMIs will continue until there is a balance available in the account. However, no further credits or deposits will be allowed after March 15, 2024.
