RBI Extends Paytm Payments Bank's Deadline To Stop Transactions Till March 15

Previously, in accordance with an order issued by the RBI on January 31, PPBL was instructed to cease such transactions after February 29

The RBI has also published a set of FAQs aimed at aiding PPBL customers and the general public, providing clarity on the matter.

The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank Ltd. (PPBL) to stop deposits, credit transactions, and top-ups in customer accounts, wallets, and FASTags. The new deadline, now set for March 15, comes in response to the central bank's concerns regarding customer interests, particularly those of merchants.

Previously, in accordance with an order issued by the RBI on January 31, PPBL was instructed to cease such transactions after February 29. However, considering the necessity for customers, including merchants, to arrange alternative solutions, the RBI has granted this additional time, aligning with broader public interests.

In its directive, the RBI highlighted the importance of ensuring a smooth withdrawal process for customer deposits held with partner banks through the 'sweep-in sweep-out' mechanism, without causing any inconvenience to the depositors.

The RBI's decision to extend the deadline follows actions taken against PPBL due to ongoing non-compliance issues and significant supervisory concerns. The central bank has deemed further supervisory measures necessary in light of these issues.

Alongside the extension, the RBI has also published a set of Frequently Asked Questions (FAQs) aimed at aiding PPBL customers and the general public, providing clarity on the matter.

Here in the following, the central bank has given some directions regarding Paytm Payments Bank: 

• 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, 2024 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime.
• Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, upto their available balance (no change).
• No banking services, other than those referred in (ii) above, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024). However, for the purpose of (ii) above (viz. for withdrawal or utilisation of available balance by customers or wallet holders), such fund transfers including AEPS, IMPS and UPI may be allowed anytime.
• The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by Paytm Payments Bank Limited are to be terminated at the earliest, in any case not later than February 29, 2024 (no change).
• Settlement of all pipeline transactions in nodal accounts referred to in item (iv) above (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter (no change).