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RBI Extends Paytm Payments Bank Service Deadline To March 15

The Reserve Bank of India (RBI) extended Paytm Payments Bank's service deadline to March 15, 2024, allowing continued transactions but restricted new deposits since February 29. Imposed under Section 35A, the RBI clarified withdrawal permissions and ordered closure of associated Nodal Accounts by February 29. Governor Shaktikanta Das announced forthcoming FAQs to address stakeholder queries post-Monetary Policy Committee meeting.
06:29 PM Feb 16, 2024 IST | Aniket Raj
rbi extends paytm payments bank service deadline to march 15

The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank services to March 15, instead of February 29 as planned earlier. This means customers can continue to deposit money, make transactions, and use services like prepaid cards and FASTags until March 15, 2024.

Previously, the RBI had stopped Paytm from accepting new deposits or transactions into its accounts starting from February 29. The central bank stated that it had imposed certain limitations on Paytm Payments Bank Ltd, which is run by One97 Communications, under Section 35A of the Banking Regulation Act, 1949. These restrictions were announced through press releases dated March 11, 2022, and January 31, 2024.

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Considering the needs of Paytm Payments Bank Ltd's customers, including merchants, who might require extra time to make alternative arrangements, and in the broader public interest, the RBI declared: "No additional deposits, credit transactions, or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc., after March 15, 2024 (extended from the previously set deadline of February 29, 2024), except for any interest, cashbacks, sweep-ins from partner banks, or refunds that may be credited at any time."

The RBI stated that customers of Paytm Payments Bank Ltd can freely withdraw or utilize their balances from various accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., without any restrictions, up to the amount available in their accounts.

The Nodal Accounts held by One97 Communications Ltd and Paytm Payments Services Ltd, managed by Paytm Payments Bank Limited, are to be closed as soon as possible, but no later than February 29, 2024.

Furthermore, the RBI has issued a set of Frequently Asked Questions (FAQs) regarding Paytm Payments Bank. Earlier this month, RBI Governor Shaktikanta Das announced after the Monetary Policy Committee (MPC) meeting that the central bank would provide FAQs for all stakeholders. Governor Das mentioned, "We have received numerous queries over the past few days. We have taken note of them, and based on that, we will release an FAQ sometime next week."

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