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Reserve Bank of India releases Paytm Payments Bank FAQs for customers

Mumbai: The Reserve Bank of India (RBI) has announced an extension of the deadline for the operations of Paytm Payments Bank Limited. The apex bank has extended the deadline to March 15, 2024. Previously, the central bank had instructed Paytm Payments Bank to halt certain key operations after February 29, 2024.

Now the apex bank has also released a  host of frequently asked questions (FAQs) for customers.

RBI FAQs on Paytm Payments Bank: Bank accounts with Paytm Payments Bank:

Paytm Payments Bank savings or current account holders will be able to continue to withdraw money after March 15

They will also be able to use their debit card to withdraw or transfer funds

They won’t be able to deposit or transfer money into their accounts after March 15; no credits or deposits other than interest, cashbacks, sweep-ins from partner banks or refunds will be allowed to be credited

Refunds, cashbacks, sweep-ins from partner banks or interest will be permitted even after March 15

Existing deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. Rs 2 lakh per individual customer at the end of the day); such sweep-ins, for the purpose of making available the balances for use or withdrawal by the customer, will continue to be allowed

No fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15

Credit of salary into Paytm Payments Bank accounts won’t worry after March 15

Paytm Payments Bank account holders will not be able to any subsidy or direct benefit transfer linked to Aadhar after March 15

Withdrawal/debit mandates (such as automated electricity bill- or OTT-related payments, or automated loan EMIs) will continue to work up to the available balance; no credit or deposit will be allowed after March 15

Loan EMIs paid through accounts with banks other than Paytm Payments Bank will continue

RBI FAQs on Paytm Payments Bank: Paytm Payments Bank Wallet:

Money in Paytm Payments Bank wallets will be available for use, withdrawal or transfer to other wallets or bank accounts up to the available balance

Minimum KYC wallets will be used only for merchant payments

Paytm Payments Bank wallet holders will not able to top-up or transfer money into or receive any credits, other than cashbacks, or refunds into the wallets

Refunds and cashbacks will be allowed to be credited after March 15

Paytm Payments Bank wallet holders can close the wallet and even have the balance transferred to an account with another bank

Minimum KYC wallet holders may use the available balance or request for a refund

RBI FAQs on Paytm Payments Bank: FASTag issued by Paytm Payments Bank:

Paytm Payments Bank-issued FASTags will be available for paying toll fees up to the available balance after March 15; new top ups won’t be permitted

Recharges of Paytm Payments Bank-issued FASTags won’t work after March 15

No transfer of balance from Paytm Payments Bank-issued FASTags to those issued by other banks will be allowed

Paytm Payments Bank-issued FASTag holders will have to close their FASTag account and request the bank for a refund

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RBI FAQs on Paytm Payments Bank: Paytm Payments Bank-issued National Common Mobility Card (NCMC):

These cards will continue to work up to the available balance after March 15; no top-ups will be allowed after this date

Transfer of balance is not allowed in NCMC cards; After March 15, customers may either use the available balance or ask Paytm Payments Bank for a refund

RBI FAQs on Paytm Payments Bank: Merchants using Paytm Payments Bank to receive payments:

Merchants who accept payments using a Paytm QR code, a Paytm Soundbox device or a Paytm POS terminal linked to another bank account (not with Paytm Payments Bank) will be able to continue to do this after March 15

However, merchants performing such tasks through a Paytm Payments account or wallet will not be able to continue with this arrangement after March 15, except refunds, cashbacks, sweep-ins from partner banks or interest

RBI FAQs on Paytm Payments Bank: Bharat Bill Payment System (BBPS):

Those making payments through Bharat Bill Payment System (BBPS) using Paytm Payments Bank accounts will be able to continue to do so up to the available balance

However, they will not be able to credit fresh funds into the Paytm Payments Bank accounts or wallets after March 15

RBI FAQs on Paytm Payments Bank: Aadhaar-enabled Payment System (AePS)

Withdrawals from Paytm Payments Bank accounts with biometric authentication under the Aadhaar-enabled Payment System will continue to work up to the available balance after March 15

RBI FAQs on Paytm Payments Bank: Money Transfer through UPI/IMPS:

Money transfers into Paytm Payments Bank accounts through UPI/IMPS won’t work after March 15

Withdrawals will work up to the available balance

RBI FAQs on Paytm Payments Bank: Paytm Payments Bank Business Correspondent:

Paytm Payments Bank account holders will be able to seek the help of Paytm Payments Bank Business Correspondents (also known as Paytm Payments Bank Agents) in withdrawing funds from the account after March 15

RBI FAQs on Paytm Payments Bank: Accounts frozen, lien marked etc :

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 Paytm Payments Bank will continue to be governed by the orders passed by such authorities

Paytm Payments Bank will allow withdrawal/transfer to another bank account of the customer up to the available balance

RBI FAQs on Paytm Payments Bank: Onboarding of new customers:

Paytm Payments Bank cannot onboard any new customers since March 11, 2022

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