In response to the recent business restrictions imposed on Paytm Payments Bank, the Reserve Bank of India (RBI) has released a detailed list of frequently asked questions (FAQs) to guide customers and the general public on the practical implications of these restrictions.
The guidelines cover various aspects concerning bank accounts, wallets, FASTag services, NCMC cards, merchant transactions, and payment systems like BBPS and AePS.
Here are the key takeaways:
Bank Accounts with Paytm Payments Bank: Customers can continue to withdraw money and use their debit cards until March 15, 2024. However, no deposits or transfers will be allowed after this date, except for specific credits like interest, cashbacks, sweep-ins, or refunds.
Wallets with Paytm Payments Bank: Wallet users can utilize their balances for transactions, but no top-ups or transfers will be permitted after March 15, 2024. However, refunds and cashbacks will still be credited.
FASTag and NCMC Services: While customers can still use their FASTags and NCMC cards until March 15, 2024, no further top-ups or recharges will be allowed after this date. Users are advised to obtain new FASTags or NCMC cards from other banks to avoid inconvenience.
Merchant Transactions: Merchants using Paytm QR codes, soundboxes, or POS terminals linked to accounts with other banks can continue their operations. However, those linked directly to Paytm Payments Bank will face restrictions on receiving credits after March 15, 2024.
BBPS and AePS Services: Payments through BBPS using Paytm Payments Bank accounts can continue until March 15, 2024. Still, customers are advised to make alternative arrangements with another bank account before the deadline.
Money Transfer through UPI/IMPS: While withdrawals via UPI/IMPS from Paytm Payments Bank accounts will still be allowed after March 15, 2024, customers cannot transfer funds into their accounts using these methods.
Business Correspondents and Account Freezing: Paytm Payments Bank Business Correspondents can assist customers with withdrawals within available balances. Account freezing due to law enforcement or internal policies will be managed accordingly.
Onboarding of New Customers: The restriction on onboarding new customers, imposed since March 11, 2022, remains in force, prohibiting Paytm Payments Bank from acquiring new customers for any services.
These guidelines aim to ensure clarity for Paytm Payments Bank customers and facilitate smooth transitions amidst the business restrictions. Customers are encouraged to make necessary arrangements before the stipulated deadlines to avoid disruptions in their banking services.
