Paytm Payments Bank Services: The Reserve Bank of India (RBI) has imposed restrictions on Paytm Payments Bank Ltd (PPBL), leading to the discontinuation of several services after March 15, 2024.
Restrictions Imposed by RBI
Paytm Payments Bank Services, The RBI enforced restrictions on PPBL on January 31, 2024, citing persistent non-compliance and supervisory concerns. These restrictions included halting fresh deposits or top-ups, initially set to take effect on February 29, 2024. However, the deadline was extended by 15 days to March 15, 2024.
Clarifications by RBI
To provide clarity amidst the restrictions, the RBI released a set of Frequently Asked Questions (FAQs) on February 16, 2024, outlining the impact on various services offered by the bank.
List of Affected Services
- Wallet Top-ups and Transfers: Customers won’t be able to add funds or transfer money into their wallets after March 15, 2024, except for cashbacks or refunds.
- Deposits into Paytm Payments Bank Accounts: No new deposits will be accepted after the specified date, except for interest, cashbacks, sweep-ins, or refunds.
- Salary Credits: Salary credits into PPBL accounts will cease after the deadline.
- Subsidies or Direct Benefit Transfers: Credits of subsidies or certain direct benefit transfers will be discontinued.
- FASTag Recharge and Balance Transfer: Recharging FASTags issued by PPBL and transferring balances to new ones won’t be possible.
- Transfers via UPI/IMPS: Funds cannot be transferred into PPBL accounts using UPI/IMPS.
- Status of UPI Services: Post-March 15, the status of UPI services is contingent upon discussions between Paytm and the National Payments Corporation of India (NPCI), guided by the RBI.
Unaffected Services
- Withdrawals from PPBL: Customers can continue to withdraw or transfer funds within the available balance.
- Refunds: Refunds, cashbacks, sweep-ins from partner banks, or interest can still be credited to accounts.
- Monthly Bill Auto-deduction: Automatic deductions for bills will proceed as long as there are sufficient funds.
- Auto Debit for EMIs: Existing mandates for loan EMIs will be honored if there are enough funds. Customers are advised to make alternative arrangements for EMI payments.
- Wallet Usage and Closure: Customers can utilize their wallet balance for transactions and close their wallets if needed.
- Continued App Functionality: All services through the Paytm app will continue without interruption.
- Other Services: Services like QR code payments, ticket bookings, utility bill payments, insurance services, investments, gold transactions, and credit card payments will remain operational.
Smooth Transition
Settlements in existing PPBL accounts will proceed until March 15, 2024. Merchants can seamlessly switch settlement bank accounts through the Paytm for Business app.