BENGALURU : The Reserve Bank of India (RBI) on Friday extended the deadline of business restrictions that it imposed on Paytm Payments Bank Limited (PPBL) to March 15 from the earlier deadline of February 29.
Paytm has shifted its nodal account to Axis Bank by opening an Escrow Account to continue merchant settlements as before. Paytm Spokesperson said, “The shift of the nodal account to Axis Bank (by opening an Escrow Account) will ensure seamless merchant settlements as before.”
The central bank stated that the nodal accounts of One97 communications and Paytm Payments Services maintained by PPBL are to be terminated at the earliest, in any case not later than February 29, 2024.
“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, other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime,” the RBI said.
It also released FAQs (frequently asked questions) on Paytm Payments Bank and according to that, customers can continue to use, withdraw or transfer their funds from their account up to the available balance in the account.
They can also continue to use debit cards to withdraw or transfer funds up to the available balance in the account.
However, one will not be able to deposit money into his/her account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited. After March 15, 2024, customers will not be able to receive any credits into their account with Paytm Payments Bank. If customers have a wallet with Paytm Payments Bank, they can continue to use, withdraw or transfer to another wallet or bank account up to the balance available in the wallet.
The central bank clarified that after March 15, 2024, customers will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet.
Meanwhile, Paytm said its QR, soundbox and card machines will continue to work as always even beyond March 15. Paytm said if users receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, they can continue to use the arrangement even after March 15, 2024.
What’s in store
Shift of the nodal account to Axis Bank will ensure seamless merchant settlements as before, says Paytm
RBI says nodal accounts of One97 Comm, Paytm Payments Services maintained by PPBL to be terminated at the earliest
Users can continue to use debit cards to withdraw/transfer funds up to the available balance
Customer will not be able to deposit money into their account with Paytm Payments Bank