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The Reserve Bank of India (RBI) has prolonged the sooner 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 additional deposits or credit transactions or top-ups could be allowed in any buyer accounts, pay as you go devices, wallets, FASTags, National Common Mobility Cards, apart from any curiosity, cashbacks, sweep in from associate banks or refunds which can be credited anytime, the RBI stated in a contemporary round issued on Friday.
Settlement of all pipeline transactions in nodal accounts in respect of all transactions initiated on or earlier than February 29, 2024 have to be accomplished by March 15, 2024 and no additional transactions could be permitted thereafter, it added.
The RBI has directed the financial institution to facilitate withdrawals of obtainable stability from all accounts and wallets, excluding those which might be 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 stated within the round.
For higher understanding of the affect of its directive issued on January 29, 2024 on Payment Bank, the RBI on Friday issued FAQs which is positioned on its web site.
As per this, retailers, if their receipt and switch of funds is linked to any checking account apart from Paytm Payments Bank, can proceed to use this association even after March 15, 2024.
However, these retailers who’re accepting funds utilizing a Paytm QR code, Paytm soundbox, Paytm POS terminal linked to their checking account or pockets with Paytm Payments Bank won’t be able to obtain any credit into their Paytm Bank account or pockets after March 15, 2024 apart from refunds, cashbacks, sweep-in from associate banks or curiosity.
“In order to avoid any inconvenience or disruption, it is suggested that you may obtain a fresh QR code linked to an account with another bank or wallet to receive payments. You may also change your bank account details (in which you receive payments) through your service provider,” the RBI stated within the FAQ.
One 97 Communications Ltd., the father or mother of Paytm, in a press release stated “Paytm QR, Soundbox, Card machine will continue to work as always ever beyond March 15, as confirmed by RBI” The firm stated it has shifted its nodal account to Axis Bank (by opening an Escrow account) to proceed seamless service provider settlements as earlier than.”
People can proceed to use their FASTag to pay toll up to the obtainable stability. However, no additional funding or top-ups will probably be allowed within the FASTags issued by Paytm Payments Bank after March 15, 2024. “It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience,” the RBI stated.
For FASTag issued by Paytm Payments Bank, nobody will probably be ready to top-up or recharge after March 15, 2024.
Since credit stability switch characteristic is just not obtainable in FASTag, customers may have to shut the outdated FASTag issued by Paytm Payments Bank and request the financial institution for a refund.
Paytm Payments Bank customers can proceed to use, withdraw or switch funds from their account up to the obtainable stability of their account even after March 15, 2024. Similarly, they will proceed to use their debit card to withdraw or switch funds up to the obtainable stability of their account.
However, after March 15, 2024, nobody will probably be ready to deposit cash into their 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,” the RBI stated.
If somebody is anticipating a refund in her/his account with Paytm Payments Bank after March 15, 2024, it may be attainable as refunds, cashbacks, sweep-in from associate banks or curiosity are permitted credit into the account even after March 15, 2024.
Similarly, the present deposits of Paytm Payments Bank customers maintained with associate banks will be introduced again (sweep-in) to the accounts with Paytm Payments Bank, topic to the ceiling on stability prescribed for a Payments Bank (i.e. ₹2 lakh per particular person buyer on the finish of day).
“Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024,” the RBI clarified.
Those whose wage is credited into their account with Paytm Payments Bank cannot proceed to obtain their wage into this account after March 15, 2024. “It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience,” the RBI stated within the FAQs. After March 15, 2024, nobody will probably be ready to obtain any subsidy and sure direct profit switch credit into their account with Paytm Payments Bank.
As far as computerized invoice fee is worried, withdrawal/debit mandates (equivalent to National Automated Clearing House (NACH) mandates) would proceed to get executed till there’s stability obtainable within the account. However, after March 15, 2024, credit or deposit within the accounts won’t be allowed. Therefore, to keep away from inconvenience, it’s prompt that one makes various preparations by means of one other financial institution, earlier than March 15, 2024.
Those having a pockets with Paytm Payments Bank can proceed to use, withdraw or switch to one other pockets or checking account up to the stability obtainable within the pockets. Minimum KYC wallets can, nonetheless, be used solely for service provider funds, the RBI stated.
But after March 15, 2024 nobody will probably be ready to top-up or switch cash into the pockets or obtain any credit, apart from cashbacks, or refunds into this pockets. Refunds and cashbacks are allowed to be credited.
