RBI Extends Deadline On Several Restrictions Imposed On Paytm Payments Bank, Also Release Customer FAQs

The Reserve Bank of India (RBI) on February 16, 2023, announced an extension of the deadline on regulations imposed on Paytm Payments Bank Limited by 15 more days. Initially set to take effect by February 29, 2024, the deadline has now been pushed back to March 15, 2024. By new deadlines, no further deposits, credit transactions, or top-ups will be allowed in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after March 15, 2024, except for credit of any interest, cashbacks, and refunds. Additionally, banking services such as fund transfers such as AEPS, IMPS, and UPI facilities will be restricted after March 15, 2024. But as announced before, any withdrawals or utilization of available balances by customers can be done anytime. All other restrictions continue to have the same date of imposition, on February 29, 2024.

RBI FAQs

Withdrawal Rules: RBI clarified that can continue to use, withdraw or transfer your funds from your account up to the available balance in your account. Similarly, you can continue to use your debit card to withdraw or transfer funds. Every payment, or auto debit like OTT platform fees, electricity bill payments or loan EMI payments will continue to get auto-debited from your account until there is a balance in your account. For withdrawals if necessary, The Paytm Payments Bank Business Correspondent (Bank Agent) can also help you.

Refunds, cashback, sweep-in from partner banks or interest are permitted credits into your account even after March 15, 2024, but no other deposits are allowed. If salary is credited into the account with Paytm Payments Bank you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.

What will happen to the Deposits maintained with partner banks through ‘sweep in/out’ arrangements, after March 15, 2024?

The existing deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. Rs 2 lakh per individual customer at the end of the day). Such sweep-ins to make available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024.

 I have a wallet with Paytm Payments Bank. Can I top-up or transfer money into this wallet after March 15, 2024? Can I receive money from any other person into this wallet after March 15, 2024?

• No. After March 15, 2024, you will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet.
  Can I transfer the balance from my old FASTag issued by Paytm Payments or old NCMC card Bank to a new FASTag or NCMC Card obtained from another Bank?

• The credit balance transfer feature is not available in the FASTag product or NCMC card. Therefore, you will have to close your old FASTag or NCMC card issued by Paytm Payments Bank and request the bank for a refund.

I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this setup even after March 15, 2024?

• Yes. If your receipt and transfer of funds are linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024. If it is linked with Paytm Payments Bank you can't receive any deposits after March 15, 2024.

Can I make withdrawals from my Paytm Payments Bank account with biometric authentication under the Aadhaar-enabled Payment System?

• Yes. You can continue to withdraw using the AePS authentication, up to the balance available in your account.

What will happen to my Paytm Payments Bank account/ wallet if there is a lien or freeze marked on account of internal policies of Paytm Payments Bank?

• The bank has been directed to allow withdrawal or transfer to another bank account of the customer, up to the available balance in the account/wallet. But any lien or freeze (full or partial) marked as per the instructions of any law enforcement or judicial authorities on the account/wallet of a customer with Paytm Payments Bank will continue to be governed by the orders passed by such authorities.