The RBI has extended the previously specified deadline for additional deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, and so on from February 29, 2024 to March 15, 2024. The same timescale extension has been granted to financial services such as fund transfers, BBPOU, and UPI facilities.
Other aspects of the original January 31 directive remained unaltered. Customers, for example, can withdraw or use balances from their accounts, such as savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, and so on, without restriction, up to the available balance.
However, the bank insisted that the nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by PPBL be closed as soon as possible, but no later than February 29, 2024.
The central bank also mandated that the PPBL ensure withdrawals up to the available balance from all accounts and wallets, excluding those suspended or flagged by law enforcement or judicial authorities.
“Further, it is directed that the bank shall facilitate a seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to such customers”
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Paytm has stated that company is working with the authorities to rectify the issue. According to reports, Paytm founder Vijay Shekhar Sharma met with Finance Minister Nirmala Sitharaman to discuss the problem in the company’s banking component. However, there appears to have been little immediate respite for the corporation.
Following the RBI announcement, Paytm’s stock continued to fall, reaching an all-time low. However, on Friday, it rose 5% to Rs 341.50 from the previous close of Rs 325.25 on the BSE.
Some of the important questions and answers posted by the RBI on the Paytm bank’s business restrictions are as follows:
- I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024? Can I continue to use my debit card issued by Paytm Payments Bank?RBI: Yes. You can continue to use, withdraw or transfer your funds from your account upto the available balance in your account. Similarly, you can continue to use your debit card to withdraw or transfer funds upto the available balance in your account.
2. I have a savings bank or current account with Paytm Payments Bank. Can I deposit or transfer money into this account after March 15, 2024?
RBI: No. After March 15, 2024, you 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.
3. I am expecting a refund in my account with Paytm Payments Bank after March 15, 2024. Can this refund be credited into my account?
RBI: Yes. Refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into your account even after March 15, 2024.
4. My salary is credited into my account with Paytm Payments Bank. Can I continue to receive my salary into this account?
RBI: No. After March 15, 2024, you will not be able to receive any such credits into your account with Paytm Payments Bank. It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.
5. I receive a subsidy or certain direct benefit transfers linked to my Aadhar from the Government in my account with Paytm Payments Bank. Can I continue to receive it into this account?
RBI: No. After March 15, 2024, you will not be able to receive any such credit into your account with Paytm Payments Bank. Please arrange to change your linked account to another bank before March 15, 2024 to avoid any inconvenience or disruption.
