RBI asks Paytm bank customers to shift to others by March 15
Mumbai: The RBI on Friday advised customers as well merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, giving 15 more days to the beleaguered entity to close most of its operations.
The earlier deadline was February 29, 2024, which the RBI has extended by 15 days keeping in view the interest of customers of PPBL who may require a little more time to make alternative arrangements and in the larger public interest
The RBI also said withdrawal or utilisation of balances by PPBL customers from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards will be permitted without any restrictions, up to their available balance even beyond March 15. The RBI has also issued a list of 30 Frequently Asked Questions (FAQs), for the customers of PPBL.
“After March 15, 2024, PPBL customers will not be able to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited,” the FAQs said. The existing deposits of PPBL customers maintained with partner banks can be brought back (sweep-in) to the accounts with PPBL, subject to the ceiling on balance (Rs 2 lakh per individual customer at the end of day). Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through PPBL will be allowed after March 15, 2024.
Salaries and pensions too will not be credited in PPBL accounts after March 15. Those customers paying EMIs or OTT subscriptions through PPBL too need to make alternative arrangements.
According to the FAQs, those having wallet with PPBL can continue to use money from the wallet after March 15, 2024 up to the balance available in the wallet. On FASTags, the RBI’s FAQs said one can continue to use them to pay toll up to the available balance.
“However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024,” it said, and advised the customers to procure a new FASTag issued by another bank before March 15, 2024. For merchants who accept payments using Paytm QR code, Paytm soundbox, Paytm POS terminal linked to PPBL account or wallet, the RBI said they will not be able to avail the service after March 15, and should look for other alternatives.
