The Reserve Bank of India (RBI) has granted an extension to Paytm Payments Bank Limited (PPBL) for ceasing crucial services, such as credit transactions, deposits, wallets, and FASTags. In a recent circular, the central bank set a new deadline of March 15, amending its earlier directives from January 31, 2024.
"Keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and the larger public interest, the following directions are issued by the Reserve Bank of India under section 35A of the Banking Regulation Act, 1949 in partial modification of the earlier Directions dated January 31, 2024," said the RBI in its fresh circular.
"No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime," the central bank noted
“However, besides the deadline extension, there has been no change or modification to its earlier order. Withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance," RBI noted.
The central bank further specified that Paytm Payments Bank will be restricted from offering any banking services except for fund transfers, including AEPS, IMPS, BBPOU, and UPI facilities, after the extended deadline of March 15, 2024, originally set for February 29, 2024. Additionally, it is important to highlight that the RBI has upheld the February 29, 2024, deadline for the closure of the Nodal Accounts held by One97 Communications Ltd and Paytm Payments Services Ltd, which are managed by Paytm Payments Bank Limited.
"Settlement of all pipeline transactions in nodal accounts referred to in item (iv) above (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter (no change)," RBI said.