CHENNAI: The Reserve Bank of India has suspended deposits, credit transactions and top ups in Paytm Payments Bank Limited (PPBL) after February 29th 2024. Prepaid instruments, wallets, FASTags, NCMC cards etc., will not be allowed after the deadline. RBI said the persistent non-compliances and continued material supervisory concerns warranted the action.
Will this affect your savings and wallets in the bank?
RBI directive has mentioned that it does not impact user deposits in their savings accounts, Wallets, FASTags and NCMC accounts, where they can continue to use the existing balances. Users cannot add money to your wallet after the deadline, however, there is no restriction on withdrawal of money from your existing balance even after Feb 29th.
Users can close wallet or sub wallet accounts and transfer any residual balance in your PPBL wallet to another bank account as per existing process of the bank.
How to redeem FDs and change DBTs?
As per the RBI directive, users will not be able to book any new Fixed Deposits after Feb 29th. However, users can redeem existing FD any time, even after Feb 29th. They will continue to be operational and secure as they are maintained by IndusInd Bank Limited. If a user has linked their Direct Benefit Transfer Scheme (DBT)
Paytm payments bank, money will not get credited in after Feb 29. They have to register your DBT with an alternate bank account.
Will the Paytm payment app work?
Paytm and its services will continue to operate beyond 29th February, the company clarified. The fintech said it started working with other banks in the last two years and will continue to expand third-party bank partnerships. “Paytm works with various banks (not just with its associate Bank), on various payments products,” the company said.
What about fund transfers?
RBI has barred fund transfers, irrespective of name and nature of services like AEPS, IMPS, etc., BBPOU and UPI after February 29, 2024. “We are evaluating various options that can be provided to our esteemed users, so that there is minimal impact to their ongoing financial transactions & operations and shall keep you updated on a regular basis,” it said in a clarification.
Can you scan Paytm QR?
The Paytm Payment Gateway business will continue to offer payments to its existing merchants through online business, so there is no problem with that. Paytm’s offline merchant payment network offerings like Paytm QR, Paytm Soundbox, Paytm Card Machine will continue as usual, where it can onboard new offline merchants as well.
What about your recurring payments in Paytm?
Users mobile recharges, subscriptions and other recurring payments will continue to operate even after the deadline.
What happens to National Automated Clearing House (NACH) payment mandatesset through PPBL for other merchants?
Recurring transactions happen through NACH. NACH mandate will get executed even after Feb 29 till there is balance available in the user’s Paytm Payments Bank account. Users cannot make fresh deposits or add money to the Paytm Payments Bank Account or Wallet after Feb 29th. Users have to request you to move your NACH mandate to an alternate bank account.
What will happen to investments with Paytm?
There will not be a hindrance in your investments with Paytm Money. The company assured that the recent RBI directives on Paytm Payments bank won’t affect Paytm Money Ltd’s (PML) operations or customers’ investments in Equity, Mutual Funds, or NPS. Paytm Money Limited is SEBI-regulated and fully compliant.
The regulator has ordered the termination of the nodal accounts of One97 Communications Ltd and Paytm Payments Services Limited before February 29, 2024. Paytm payment banks plan to move the nodal to other banks during this period.