Introduction
In an attempt to allay, if not quell, the concerns of the individual user, the FAQs pertaining to Paytm Payments Bank have been issued by the Reserve Bank of India (RBI). These FAQs address various concerns regarding the banking operations of Paytm, covering aspects such as withdrawals, refunds, and salary credits. Customers are permitted to utilize, withdraw, or transfer funds within their available balances until March 15. However, after this date, new deposits will no longer be accepted, although refunds, cashbacks, and interest can still be received. Our article titled, ‘RBI Releases FAQs on Paytm Payments Bank’ summarises the key points put forth by the FAQs in a simplified manner.
Earlier, the RBI had directed Paytm Payments Bank to suspend certain crucial operations by February 29, 2024. However, this deadline has been extended to March 15, 2024, providing a temporary respite for both the fintech company and its users.
RBI FAQs Summarised!
We have summarised the FAQs to assist our users understand the FAQs in a simplified manner. Summary of FAQs released by the Reserve Bank of India regarding Paytm Payments Bank Limited is provided below:
- Continuity of Account Services: Customers can continue to withdraw money from their accounts and use their debit cards until March 15, 2024.
- Deposit Restrictions: Deposits or transfers into accounts with Paytm Payments Bank will not be allowed after March 15, 2024, except for certain credits like interest, cashbacks, sweep-ins from partner banks, or refunds.
- Receipt of Credits: Refunds, cashbacks, sweep-ins from partner banks, or interest can still be credited into accounts even after March 15, 2024.
- Partner Bank Deposits: Existing deposits maintained with partner banks can be swept back into Paytm Payments Bank accounts, subject to certain limits, but no fresh deposits will be allowed after March 15, 2024.
- Salary Credits: Salary credits into Paytm Payments Bank accounts will not be allowed after March 15, 2024.
- Government Transfers: Government subsidies or direct benefit transfers linked to Aadhar cannot be received into Paytm Payments Bank accounts after March 15, 2024.
- Automatic Bill Payments: Withdrawal mandates for payments like electricity bills will continue until the account balance is available, but no new credits will be allowed after March 15, 2024.
- Automatic Subscription Payments: Automatic payments like OTT subscriptions through UPI will continue until the account balance is available, but no new credits will be allowed after March 15, 2024.
- Loan EMI Payments: Auto-debit for loan EMIs will continue until the account balance is available, but no new credits will be allowed after March 15, 2024.
- EMIs from Other Banks: EMIs paid from accounts with banks other than Paytm Payments Bank can continue as usual.
- Wallet Services: Wallet services can be used until March 15, 2024, but no top-ups or transfers will be allowed after that date.
- FASTag Services: FASTags can be used for toll payments until March 15, 2024, but no further top-ups or recharges will be allowed after that date.
- NCMC Services: NCMC cards can be used until March 15, 2024, but no further top-ups or recharges will be allowed after that date.
- Merchant Payments: Merchants using Paytm QR codes or other services linked to Paytm Payments Bank accounts cannot receive credits after March 15, 2024, except for certain exceptions.
- BBPS Payments: Payments through BBPS can continue until March 15, 2024, but customers are advised to make alternative arrangements with another bank account.
- AePS Withdrawals: Withdrawals through AePS authentication can continue until the account balance is available.
- UPI/IMPS Transfers: Money cannot be transferred into Paytm Payments Bank accounts after March 15, 2024, but withdrawals are allowed.
- Business Correspondent Assistance: Paytm Payments Bank Business Correspondents can assist customers in withdrawing funds from their accounts.
- Accounts Frozen: Accounts with liens or freezes will be governed by the orders of law enforcement or judicial authorities.
- New Customer Onboarding: Paytm Payments Bank remains restricted from onboarding new customers since March 11, 2022.
Link to RBI FAQs on Paytm Payments Bank
If you want to read the text of the FAQs, you can click on this link which will redirect you to the relevant page of RBI website: Reserve Bank of India – Frequently Asked Questions (rbi.org.in). You may also read our article on Paytm’s RBI classification and regulation.
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