The Reserve Bank of India (RBI) has recently announced an extension of the deadline for Paytm Payments Bank services to March 15, 2024. This decision, as per a press release issued by the apex bank on Friday, is aligned with the larger public interest, particularly that of the merchants who rely on Paytm’s services for various transactions.
Customers of Paytm Payments Bank can continue to make deposits, credit transactions, utilize prepaid services, wallets, FASTags, and National Common Mobility Cards until March 15. However, the RBI has emphasized that beyond this date, no further deposits, credit transactions, or top-ups shall be allowed in any customer accounts.
The RBI’s statement clarified, “Withdrawal or utilization 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 (no change).” This means that customers will still have access to their funds and can use them as they see fit.
The central bank has also directed that withdrawals up to the available balance must be facilitated by the bank from all accounts and wallets, except those that are frozen or marked under lien by Law Enforcement or judicial authorities. This ensures that customers can easily access their funds and make necessary transactions.
Vijay Shekhar Sharma, the founder of Paytm, reassured users that key services like Paytm QR, Soundbox, and EDC (card machine) would continue to operate seamlessly even after March 15. This means that customers can still rely on these services for their day-to-day transactions without any disruptions.
Earlier, the RBI had barred the Paytm subsidiary from accepting further deposits or opening new accounts from February 29 onward. This regulatory action was taken under Section 35A of the Banking Regulation Act, 1949, which imposed specific business restrictions on Paytm Payments Bank Ltd, operated by One97 Communications.
The extension of the deadline offers a grace period for both Paytm Payments Bank and its customers to make necessary adjustments in line with the regulatory changes. It provides an opportunity for the bank to ensure compliance with the regulations while minimizing any inconvenience to its customers.
As the digital payments landscape evolves, such measures aim to ensure the stability and integrity of the financial system while safeguarding the interests of consumers and businesses alike. The RBI’s decision to extend the deadline for Paytm Payments Bank operations reflects its commitment to creating a secure and efficient digital payments ecosystem.
In conclusion, the RBI’s extension of the deadline for Paytm Payments Bank services until March 15, 2024, provides customers with ample time to make necessary adjustments. It ensures that they can continue to access their funds and use essential services seamlessly. This regulatory action underscores the RBI’s dedication to maintaining a robust financial system while prioritizing the interests of consumers and businesses.