Last month, the RBI had barred Paytm Payments Bank from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC card after February 29, 2024 in the wake of persistent non-compliances and material.
The Reserve Bank of India (RBI), while extending the deadline for restriction imposed on Paytm Payments Bank (PPBL) till March 15, 2024, issued a detailed list of Frequently Asked Questions (FAQs) Friday for customers of the bank. While the RBI said customers can’t transfer or deposit money into the PPBL accounts after March 15, they can use the money lying in PPBL accounts till it’s exhausted.
Last month, the RBI had barred Paytm Payments Bank from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC card after February 29, 2024 in the wake of persistent non-compliances and material.
Paytm Payments Bank Wallet
RBI clarified that said after March 15, 2024, wallet users of Paytm Payments Bank will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into the wallet.
The refunds and cashbacks which are due in the wallet will also be allowed to be credited after the deadline.
The wallet users of PPBL will continue to use, withdraw or transfer money to another wallet or bank account up to the balance available after March 15, 2024 also, the bank said. However, minimum KYC wallets can be used only for merchant payments, it said.
As per the regulation, a minimum-KYC wallet can be opened by submitting minimal information including a mobile number verified with OTP (one time password), a self-declaration of name and a unique identity / identification number.
A bank customer can also close the Paytm Payments Bank wallet and transfer the balance to their account with another bank. For this, a customer can approach the bank or use its banking app to close the wallet and transfer the balance to an account maintained with another bank in the case of full KYC wallets.
In the case of minimum KYC Wallet, a customer may use the available balance or request for a refund, the RBI said.
FASTag issued by Paytm Payments Bank
Customers having FastTag issued by PPBL will be able to continue to use the FASTag to pay toll upto the available balance. However, no further funding or top ups will be allowed in the FASTags issued by the bank after March 15, 2024.
Customers using FASTag issued by the bank will not be able to top-up and recharge the balance post March 15, 2024. They will have to procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.
The RBI said since the credit balance transfer feature is not available in the FASTag product, customers will have to close their old FASTag issued by the bank and request the bank for a refund.
Bank accounts with Paytm Payments Bank
Customers who are having savings or current account with PPBL, can continue to use, withdraw or transfer their funds from their account upto the available balance in account after March 15. Similarly, they can use their debit card to withdraw or transfer funds upto the available balance in their account.
The bank’s savings bank or current account customers will not be able to deposit money into their account with PPBL after March 15.
“No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited,” the RBI said.
The central bank said that refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into your account even after March 15.
The existing deposits of PPBL customers maintained with partner banks can be brought back (sweep-in) to the accounts with PPBL, subject to the ceiling on balance prescribed for a payments bank, which is Rs 2 lakh per individual customer at the end 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 PPBL will be allowed after March 15, the RBI said.
After the deadline, customers will not be able to receive any salary in their account with PPBL and they will have to make alternative arrangements with another bank before March 15 to avoid inconvenience, the RBI said.
Any subsidy or direct benefit transfers will also not be credited into any account with PPBL after March 15.
The RBI said withdrawal or debit mandates (such as National Automated Clearing House (NACH) mandates) will continue to get executed till there is balance available in the account of PPBL’s customer. However, after March 15, 2024, credit or deposit in the PPBL accounts will not be allowed.
Withdrawal or debit mandates through automatic UPI mandates will continue to get executed till the time there is balance available in a customer’s account.
Auto debit mandates such as the instalment (EMI) of a customer’s loan which is automatically paid through their account with PPBL will continue to get executed till the time there is balance available in the account. After March 15, 2024, credit or deposit in the accounts with PPBL will not be allowed, the RBI said.
EMIs registered with any bank other than PPBL can continue after March 15.
Money transfer through UPI/ IMPS
The bank’s customers will not be able to transfer the money into their account with PPBL account after March 15, 2024. However, customers can withdraw money from PPBL account through UPI/ IMPS upto the balance available in your account.
Merchants using Paytm Payments Bank to receive payments
The merchants that are accepting payments using a Paytm QR code, Paytm soundbox or Paytm POS terminal, linked to another bank account (not with PPBL) will be able to continue to use the set-up even after March 15, 2024.
After March 15, merchants will not be able to receive any credit into their bank account or wallet with PPBL other than refunds, cashbacks, sweep-in from partner banks or interest.
Onboarding of new customers
The RBI said the business restriction announced on March 11, 2022, prohibiting PPBL from onboarding any new customers for any of its services continues to be in force. Hence, the bank cannot onboard any new customers after March 11, 2022.
National Common Mobility Card (NCMC) issued by PPBL
Customers having NCMC card issued by PPBL will be able to use it upto the available balance till March 15. No top-up of funds into the card will be allowed after the deadline.
Aadhar enabled Payment System (AePS)
The bank’s customers can continue to withdraw from their account using the AePS authentication, upto the balance available in the account.
Accounts frozen or lien marked
The RBI said any lien or freeze (full or partial) marked as per the instructions of any law enforcement or judicial authorities on the account/wallet of a customer with PPBL will continue to be governed by the orders passed by such authorities.
In case, if there is a lien or freeze marked on PPBL account or wallet due to internal policies of the bank, RBI has directed the lender to allow withdrawal or transfer to another bank account of the customer, upto the available balance in the account / wallets.
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