RBI Extends Deadline For Paytm Payments Bank Restrictions To March 15
The update comes in response to queries raised by members of the public on the stringent curbs imposed on Paytm Payments Bank on Jan. 31.
The Reserve Bank of India has extended the deadline for Paytm Payments Bank restrictions to March 15, from the previous Feb. 29.
"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 Feb. 29, 2024), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime," the RBI said.
The step has been taken in the interest of customers and merchants who may require time to make alternative arrangements.
A handbook of frequently asked questions on Paytm Payments Bank, for customers has also been released by the regulator.
The RBI has said that while the deadline has been extended, the nature of restricted activities doesn't change after the new deadline of March 15.
What Doesn't Change?
Following restrictions does not change post-extension of the deadline.
RBI has said that no banking services, other than fund transfers, BBPOU and UPI facilities, will be provided by Paytm Payments Bank after March 15.
Withdrawals of the available balance should be facilitated by the bank from all accounts and wallets up to their available balance. This includes savings bank accounts, current accounts, and prepaid instruments like FASTags, NCMC, etc.
The nodal accounts of One97 Communications Ltd. and Paytm Payments Services maintained by the bank are to be terminated no later than Feb. 29.
The settlement of all pipeline transactions in nodal accounts shall be completed by March 15 and no further transactions will be permitted after this.
RBI has also said that frozen accounts or those in lien, marked by law enforcement or judicial authorities, will be exempted from this.
It has also directed Paytm Payments Bank to enable a 'seamless withdrawal of customer deposits' that are parked with partner banks under the ‘sweep-in sweep-out’ facility.
The update comes in response to queries raised by members of the public about the stringent curbs imposed on Paytm Payments Bank on Jan. 31.
RBI, in its orders, had said that Paytm Payments Bank cannot accept fresh deposits, top-ups or credit transactions in its accounts after Feb. 29. This was after the regulator observed persistent non-compliance and major supervisory concerns at the entity.
In response to media queries on Paytm Payments Bank after the monetary policy, RBI Governor Shaktikanta Das also said that restrictions on regulated entities are always proportionate to the gravity of the situation.
