1. RBI extends the deadline for Paytm Payments Bank services to halt until March 15.
2. RBI extends the deadline for Paytm Payments Bank services halt until March 15.
3. Decision reflects RBI’s consideration of customer needs and broader public interests.
New Delhi, Feb 16: The Reserve Bank of India (RBI) has granted Paytm Payments Bank Limited (PPBL) an extension until March 15 to halt key services, including credit transactions, deposits, wallet operations, and FASTags.
In a recent circular, the RBI cited the interest of customers, including merchants, in needing additional time to make alternative arrangements, as well as considering broader public interests.
This decision modifies the earlier directive issued on January 31, 2024.
According to the updated circular, after March 15, 2024, PPBL will not accept further deposits or credit transactions, including top-ups in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc.
Exceptions include interest, cashbacks, sweep-ins from partner banks, or refunds, which may still be credited.
While the deadline has been extended, there have been no changes or amendments to the earlier directive.
Customers are still permitted to withdraw or utilize balances from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., without any restrictions, up to their available balance.
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Additionally, after March 15, 2024, PPBL will only be allowed to offer limited banking services, specifically fund transfers (including services like AEPS, IMPS, etc.), BBPOU, and UPI facilities. Other banking services will not be permitted beyond this date.
It’s noteworthy that the RBI has upheld the February 29, 2024, deadline for terminating the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd, maintained by Paytm Payments Bank Limited.
RBI emphasized that the settlement of all pipeline transactions in nodal accounts, initiated on or before February 29, 2024, must be completed by March 15, 2024. No further transactions will be allowed after this date.
This extension provides PPBL and its customers with additional time to transition smoothly while ensuring regulatory compliance and safeguarding the interests of all stakeholders.
