Paytm Payments Bank Services Closure Deadline Extended
The Reserve Bank of India (RBI) has announced an extension to the deadline for the closure of certain services provided by Paytm Payments Bank Ltd (PPBL). In a statement released today, the RBI stated that the closure deadline for various banking services offered by PPBL has been extended to March 15, 2024. This decision comes in light of the interests of customers, including merchants, who may require additional time to make alternative arrangements.
Under the revised directive issued by the RBI under Section 35A of the Banking Regulation Act, 1949, several modifications have been made to the earlier restrictions imposed on PPBL. While no further deposits, credit transactions, or top-ups will be allowed after March 15, 2024, customers will still be permitted to withdraw or utilize balances from their accounts without any restrictions, up to their available balance.
Additionally, PPBL will cease to provide certain banking services, including fund transfers such as AEPS, IMPS, BBPOU, and UPI facility, after the extended deadline of March 15, 2024. However, customers will still be able to withdraw or utilize their available balance through fund transfers, including AEPS, IMPS, and UPI, at any time.
Furthermore, the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd, maintained by PPBL, are mandated to be terminated by February 29, 2024. Settlement of all pipeline transactions in these nodal accounts, initiated on or before February 29, 2024, must be completed by March 15, 2024.
The directive also ensures that withdrawals up to the available balance should be facilitated by the bank from all accounts and wallets, excluding those that are frozen or lien marked by Law Enforcement or judicial authorities. PPBL is directed to ensure a seamless withdrawal of customer deposits parked with partner banks under the automatic “sweep-in sweep-out” facility, without causing any inconvenience to customers.
Accompanying the announcement, the RBI has also provided a list of Frequently Asked Questions (FAQs) for the convenience of PPBL customers and the general public.
Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15.
The latest FAQ issued by RBI on point #21 clarifies it unambiguously.
Do not fall for any rumour or let anyone deter you to championing Digital India ! https://t.co/ts5Vqmr6qh— Vijay Shekhar Sharma (@vijayshekhar) February 16, 2024
Yesterday in a development surrounding Paytm Payments Bank, it has been omitted from the list of 32 banks authorized to issue new FASTags for vehicles. This exclusion comes amidst a controversy ignited by the Reserve Bank of India’s (RBI) crackdown on the bank’s operations.
The Indian Highway Management Company (IHMCL), the tolling arm of the National Highways Authority of India (NHAI), released a list of 32 authorized banks for FASTag issuance, omitting Paytm Payments Bank. IHMCL’s announcement urged travelers to obtain FASTags from the listed banks, raising concerns about potential disruptions for Paytm FASTag users.
