Paytm Crisis: RBI Extends Deadlines on Certain Business Restrictions Till March 15. (Representative picture)
The deadlines on sure enterprise restrictions concerning Paytm Payments Bank Ltd have been prolonged on companies like prime-ups and fund transfers, whereas the remaining PPBL companies will probably be shut on February 29 solely
The Reserve Bank of India (RBI) on Friday prolonged deadlines on sure enterprise restrictions concerning Paytm Payments Bank Ltd (PPBL) by 15 days until March 15, 2024, as towards the February 29 determined earlier. The deadlines have been prolonged on companies like prime-ups and fund transfers, whereas the remaining PPBL companies will probably be shut on February 29 solely.
PPBL Business Restrictions Where Deadline Extended Till March 15
In a notification, the RBI stated, “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.”
No banking companies like fund transfers (no matter identify and nature of companies like AEPS, IMPS, and so forth.), BBPOU and UPI facility needs to be supplied by the financial institution after March 15, 2024 (prolonged from the sooner stipulated timeline of February 29, 2024), the RBI stated.
PPBL Business Restrictions Where Deadline Is Same As February 29
Withdrawal or utilisation of balances by its clients from their accounts together with financial savings financial institution accounts, present accounts, pay as you go devices, FASTags, National Common Mobility Cards, and so forth. are to be permitted with none restrictions, as much as their obtainable stability.
The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by Paytm Payments Bank Limited are to be terminated on the earliest, in any case not later than February 29, 2024.
Settlement of all pipeline transactions in nodal accounts (in respect of all transactions initiated on or earlier than February 29, 2024) shall be accomplished by March 15, 2024 and no additional transactions shall be permitted thereafter.
The RBI additionally stated, “It is also directed that withdrawals upto their available balance should be facilitated by the bank from all accounts and wallets, excluding the ones that are frozen or lien marked by Law Enforcement or judicial authorities.”
It is directed that the financial institution shall facilitate a seamless withdrawal of buyer deposits which are parked with companion banks beneath the automated ‘sweep-in sweep-out’ facility with out inflicting any inconvenience to such clients, the RBI stated.
On January 31, the banking regulator had determined to bar PPBL, which homes all of Paytm’s 330 million pockets accounts, from accepting deposits or prime-ups in any buyer accounts, wallets, FASTags and different devices after February 29.
