The Reserve Bank of India ( RBI ) has announced an extension of the deadline for certain business operations concerning Paytm Payments Bank Ltd ( PPBL ). The apex bank has made partial modifications to the press release issued dated January 31, 2024
In consideration of the interests of PPBL customers, including merchants, who may require additional time to arrange alternative services, the RBI has issued modified directives under Section 35A of the Banking Regulation Act, 1949. These directives are as follows:
Deadline Extension on Credit Transactions: The deadline for further deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, NCMC etc., has been extended to March 15, 2024, from the earlier stipulated timeline of February 29, 2024. However, certain exceptions such as interest, cashbacks, sweep-ins from partner banks, or refunds may still be credited at any time.
Read More: Paytm Ban Supervisory, Not Detrimental to FinTech Ecosystem, says RBI
Deadline Extension on Ceasing Banking Services: From March 15, 2024, the bank will not provide any banking services other than withdrawals or utilization of available balances, including fund transfers (such as AEPS, IMPS, BBPOU, and UPI facilities), except for withdrawals facilitated by the bank from accounts and wallets not frozen or lien marked by Law Enforcement or judicial authorities.
Withdrawal Facilitation: Customers are 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.
Closure of Nodal Accounts: Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by PPBL are to be terminated at the earliest, no later than February 29, 2024.
Pipeline Transaction Settlement: Settlement of all pipeline transactions in nodal accounts initiated on or before February 29, 2024, must be completed by March 15, 2024, with no further transactions permitted thereafter.
Furthermore, the bank is directed to facilitate seamless withdrawals of customer deposits parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing inconvenience to customers.
Also read: RBI Ban on Paytm: What Paytm Users Need to Know about Their Accounts
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