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The Reserve Bank of India (RBI) Friday told Paytm Payments Bank Ltd (PPBL) to halt deposits, credit transactions and top-ups in customer accounts, prepaid instruments and wallets by March 15, extending its deadline by 15 days.
The central bank, in a January order, had told PPBL to stop such transactions by February 29, citing persistent non-compliance and supervisory concerns.
On Friday, it said the relaxation has been given keeping in view the interest of customers (including merchants) who may require more time to make alternative arrangements.
“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 said.
On Friday, the central bank also issued a set of FAQs (frequently asked questions) to provide clarity to PPBL customers and merchants.
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 (no change).
“No banking services, other than those referred in above, 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 timeline of February 29, 2024),” the RBI said.
The central bank also asked the bank to 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.
“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,” the RBI said.
It said that the Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by Paytm Payments Bank are to be terminated at 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 before February 29, 2024) should have to be completed by March 15, 2024 and no further transactions shall be permitted thereafter, the RBI said.
