The Reserve Bank of India (RBI) has extended the deadline for customers and merchants of Paytm Payments Bank Ltd (PPBL) to transition their accounts to other banks until March 15. This extension, originally set for February 29, 2024, aims to facilitate a smoother transition for customers and merchants while ensuring their best interests are upheld.
Customers of PPBL are encouraged to transfer their account balances, including savings, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, to alternative banks before March 15. The RBI emphasizes that withdrawals and utilization of balances from PPBL accounts will continue to be permitted without restrictions beyond this date.
To aid customers during this transition, the RBI has released a comprehensive list of Frequently Asked Questions (FAQs) addressing common concerns and queries. These FAQs cover various aspects, including deposit limitations, account closures, and alternative banking arrangements.
After March 15, 2024, PPBL accounts will no longer accept deposits, except for certain specified transactions such as interest, cashbacks, or refunds. Additionally, salaries, pensions, EMIs, and OTT subscriptions will cease to be credited into PPBL accounts beyond this date.
Customers with existing deposits in partner banks can transfer these balances back to their PPBL accounts, subject to the prescribed balance ceiling. However, fresh deposits into partner banks through PPBL will not be permitted after March 15, 2024.
For users of PPBL wallets and FASTags, the RBI advises continued use until the available balance is exhausted. However, no further funding or top-ups for FASTags will be allowed after March 15, 2024. Customers are encouraged to procure new FASTags from alternative banks before this deadline.
Merchants using Paytm QR codes, soundboxes, or POS terminals linked to PPBL accounts are advised to seek alternative payment solutions before March 15, 2024. Transitioning to new QR codes linked to accounts with other banks or wallets is recommended to avoid disruptions in payment acceptance.
In a reassuring statement, Vijay Shekhar Sharma, founder and CEO of Paytm, assures users that Paytm QR codes, soundboxes, and EDC machines will continue to function as usual beyond March 15, 2024. He urges users not to be swayed by rumors and to continue supporting digital initiatives in India.
The RBI had previously prohibited PPBL from onboarding new customers in March 2022. Settlement of pending transactions initiated on or before February 29, 2024, will be completed by March 15, 2024, after which no further transactions will be permitted.
Furthermore, the RBI mandates the termination of nodal accounts held by One97 Communications Ltd (OCL) and Paytm Payments Services Ltd maintained by PPBL no later than February 29, 2024, underscoring the regulatory measures in place to streamline operations and protect stakeholders' interests.
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