RBI extends last date for Paytm Payments Bank to stop accepting deposits to March 15

Mumbai, Feb 16:  The Reserve Bank of India (RBI) has extended by 15 days to March 15 the deadline after which Paytm Payments Bank Ltd is barred from accepting deposits. The last date fixed earlier was February 29.

The RBI said that the extension has been given 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.

“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 RBI order states.

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, upto their available balance which was stated in the earlier order dated Jan 31 as well.

Banking services like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024).

However, for the purpose of withdrawal or utilisation of available balance by customers or wallet holders, such fund transfers including AEPS, IMPS and UPI may be allowed anytime.

The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by Paytm Payments Bank Limited are to be terminated at the earliest, in any case not later than February 29, 2024, This was also stated in the earlier order.

Similarly, settlement of all pipeline transactions in nodal accounts referred 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.

The RBI has directed that withdrawals up to 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.

RBI also 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.