RBI Announces New FAQs: No More Top-Ups or Transfers to Paytm Payments Bank Accounts After March 15 | Explained News

The Reserve Bank of India (RBI), while announcing a deadline extension for the restriction imposed on Paytm Payments Bank (PPBL) until March 15, released an extensive list of Frequently Asked Questions (FAQs) on Friday (February 16) for the bank’s customers.

Last month, the central bank had prohibited Paytm Payments Bank from receiving deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags, and NCMC card after February 29, 2024, due to persistent non-compliance and other supervisory concerns.

The latest FAQs clarify several important details about the operations of Paytm Payments Bank, including the usage of wallets, FASTags, bank accounts, money transfers, and other services provided by the bank.

After March 15, 2024, wallet users of Paytm Payments Bank will not be able to replenish or transfer funds into the wallet, or receive any credits, other than cashbacks, or refunds into the wallet. However, wallet users will still have the ability to use, withdraw, or transfer funds to another wallet or bank account even after the deadline.

Minimum KYC wallets can only be utilized for merchant payments, according to the RBI. Additionally, wallet users have the option to close the Paytm Payments Bank wallet and transfer the balance to another bank account.

As for FASTag issued by Paytm Payments Bank, customers will be able to use the FASTag to pay tolls up to the available balance. However, no further funding or top-ups will be allowed after the March 15 deadline. Customers have been advised to procure a new FASTag issued by another bank before the deadline to avoid any inconvenience.

For customers with savings or current accounts with PPBL, they can continue to use, withdraw, or transfer their funds from their account up to the available balance even after March 15. However, they will not be able to deposit money into their account with PPBL after that date, except for interest, cashbacks, sweep-in from partner banks, or refunds.

Customers will not be able to transfer money into their account with PPBL after March 15, 2024. However, they can withdraw money from their account through UPI/IMPS up to the available balance.

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.

Customers having NCMC card issued by PPBL will be able to use it up to the available balance until March 15. No top-up of funds into the card will be allowed after the deadline.

The RBI has also provided clarity on the handling of accounts that are frozen or lien marked, whether by law enforcement or judicial authorities, or due to internal policies of the bank, ensuring that customers can still access their funds to some extent.

Overall, the RBI has offered detailed guidance regarding the operations of Paytm Payments Bank, ensuring that customers are informed about the implications of the regulatory measures imposed on the bank.

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