RBI Extends Deadline for Paytm Payments Bank Services to March 15:
The Reserve Bank of India (RBI) has granted an extension to Paytm Payments Bank, pushing the deadline for its services to March 15, 2024, instead of the initially planned date of February 29. This decision allows customers to continue utilizing the bank’s services, including depositing money, making transactions, and using features like prepaid cards and FASTags, until the new deadline.
Earlier, the RBI had imposed restrictions on Paytm Payments Bank Ltd, operated by One97 Communications, under Section 35A of the Banking Regulation Act, 1949. This included halting new deposits or transactions into Paytm accounts starting from February 29. The RBI justified these measures through press releases dated March 11, 2022, and January 31, 2024.
In consideration of the requirements of Paytm Payments Bank Ltd’s customers, particularly merchants needing additional time to make alternative arrangements, and in the broader public interest, the RBI opted to extend the deadline. The central bank clarified that no additional deposits, credit transactions, or top-ups would be permitted after March 15, 2024, except for specific instances like interest, cashbacks, or refunds.
Customers of Paytm Payments Bank Ltd are permitted to freely withdraw or utilize their balances from various accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., without any restrictions, up to the available balance.
The RBI also directed the closure of Nodal Accounts held by One97 Communications Ltd and Paytm Payments Services Ltd, managed by Paytm Payments Bank Limited, by February 29, 2024, at the latest.
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024 – FAQshttps://t.co/UrOyvSdxCv
— ReserveBankOfIndia (@RBI) February 16, 2024
Furthermore, the RBI has released a set of Frequently Asked Questions (FAQs) concerning Paytm Payments Bank, addressing queries from stakeholders. This move follows RBI Governor Shaktikanta Das’s announcement post the Monetary Policy Committee (MPC) meeting, wherein he acknowledged the need to provide clarity through FAQs based on numerous queries received. Governor Das affirmed, “We will release an FAQ sometime next week.”
In summary, the extension of the service deadline provides Paytm Payments Bank customers with additional time for transactions while adhering to the RBI’s directives and ensuring clarity through forthcoming FAQs.