Paytm Payments Bank gets reprieve till March 15, RBI cites customers’ interest

MUMBAI,FEB 16 :The Reserve Bank of India (RBI) on Friday extended the earlier deadline given to Paytm Payments Bank Limited (PPBL) to stop key services, including credit transactions, deposits, wallet, and FASTags.

The central bank has said in a fresh circular that the new deadline is March 15, and also released a list of FAQ on Paytm Payments Bank.

“Keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and the larger public interest, the following directions are issued by the Reserve Bank of India under section 35A of the Banking Regulation Act, 1949 in partial modification of the earlier Directions dated January 31, 2024,” said the RBI in its fresh circular.

The central bank noted: “No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime.”

However, besides the deadline extension, there has been no change or modification to its earlier order. Withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance,” RBI noted.

The central bank went on to add that no banking services other than fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facilities can be provided by the bank after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024).

It is also worth noting that RBI has maintained the February 29, 2024 deadline for the termination of the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd, maintained by Paytm Payments Bank Limited.

“Settlement of all pipeline transactions in nodal accounts referred to in item (iv) above (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter (no change),” RBI said.

-PTI