Paytm Crisis: RBI Extends Deadlines on Certain Business Restrictions Till March 15

Paytm Crisis: RBI Extends Deadlines on Certain Business Restrictions Till March 15. (Representative image)

The Reserve Bank of India (RBI) on Friday extended deadlines on certain business restrictions regarding Paytm Payments Bank Ltd (PPBL) by 15 days till March 15, 2024, as against the February 29 decided earlier. The deadlines have been extended on services like top-ups and fund transfers, while the remaining PPBL services will be shut on February 29 only.

PPBL Business Restrictions Where Deadline Extended Till March 15

In a notification, the RBI said, “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.”

No 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), the RBI said.

PPBL Business Restrictions Where Deadline Is Same As February 29

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.

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.

Settlement of all pipeline transactions in nodal accounts (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 also said, “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.”

It is 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, the RBI said.

On January 31, the banking regulator had decided to bar PPBL, which houses all of Paytm’s 330 million wallet accounts, from accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29.