The Reserve Bank of India (RBI) has granted an extended deadline of March 15 to Paytm Payments Bank Ltd (PPBL) to halt deposits, credit transactions, and top-ups in customer accounts, prepaid instruments, and wallets. This extension comes after the central bank’s January order directing PPBL to stop such transactions by February 29, citing persistent non-compliance and supervisory concerns.
The RBI stated that the relaxation was given considering the interest of customers, including merchants, who may require more time to make alternative arrangements. After March 15, 2024, no further deposits, credit transactions, or top-ups will be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc., other than interest, cashbacks, sweep-ins from partner banks, or refunds which may be credited at any time.
Withdrawals or utilization of balances by PPBL customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., will be permitted without any restrictions, up to their available balance.
The RBI also instructed that no banking services, other than those mentioned above, such as fund transfers (regardless of the name and nature of services like AEPS, IMPS, etc.), BBPOU, and UPI facility, should be provided by PPBL after March 15, 2024. The central bank further directed PPBL to facilitate the seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience.
Additionally, the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by Paytm Payments Bank are to be terminated at the earliest, no later than February 29, 2024. Settlement of all pipeline transactions in nodal accounts (in respect of all transactions initiated on or before February 29, 2024) should be completed by March 15, 2024, and no further transactions shall be permitted thereafter, as per the RBI’s directives.
