RBI extends deadline for Paytm Bank customers to make deposits, access credit transactions till March 15

The Reserve Bank of India (RBI) has extended the earlier stipulated deadline (of February 29, 2024) for Paytm Payments Bank’s customers to make deposits and access credit transactions till March 15, 2024.

The Reserve Bank of India (RBI) has extended the earlier stipulated deadline (of February 29, 2024) for Paytm Payments Bank’s customers to make deposits and access credit transactions till March 15, 2024.

After the revised date no further deposits or credit transactions or top-ups would be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime, the RBI said in a fresh circular issued on Friday.

There is no change in the date for withdrawal or utilisation of balances by its customers from their accounts that is February 29. No banking services, other than fund transfers, BBPOU and UPI facility would be provided by the bank after March 15, 2024. Withdrawal or utilisation of available balance by customers or wallet holders, such fund transfers including AEPS, IMPS and UPI would be allowed anytime, the RBI said.

Settlement of all pipeline transactions in nodal accounts in respect of all transactions initiated on or before February 29, 2024 must be completed by March 15, 2024 and no further transactions would be permitted thereafter, it added.

The RBI has directed the bank to facilitate withdrawals of available balance from all accounts and wallets, excluding the ones that are frozen or lien marked 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,” the RBI said in the circular.

For better understanding of the impact of its directive issued on January 29, 2024 on Payment Bank, the RBI on Friday issued FAQs which is placed on its website.