RBI asks Paytm Payments Bank customers to shift to other banks by March 15

07:36 PM Feb 16, 2024 | PTI |

Mumbai: The RBI on Friday advised customers as well merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, giving 15 more days to the beleaguered entity to close most of its operations, including deposit and credit transactions.


The earlier deadline was February 29, 2024, which the RBI has extended by 15 days keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and in the larger public interest The RBI also said withdrawal or utilisation of balances by PPBL customers from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards will be permitted without any restrictions, up to their available balance even beyond March 15.

The central bank has also issued a list of 30 Frequently Asked Questions (FAQs), for the convenience of customers of PPBL, and the general public at large.

”After March 15, 2024, you (PPBL customers) will not be able to deposit money into your 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,” the FAQs said.

It further said: ”It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience”.


The existing deposits of PPBL customers maintained with partner banks can be brought back (sweep-in) to the accounts with PPBL, subject to the ceiling on balance (Rs 2 lakh per individual customer at the end of day).

Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through PPBL will be allowed after March 15, 2024.

Salaries and pensions too will not be credited in PPBL accounts after March 15. Those customers paying EMIs or OTT subscriptions through PPBL too need to make alternative arrangements.

According to the FAQs, those having wallet with PPBL can continue to use money from the wallet after March 15, 2024 up to the balance available in the wallet.

On FASTags, the RBI’s FAQs said one can continue to use them to pay toll up to the available balance.

”However, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024,” it said, and advised the customers to procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

For merchants who accept payments using Paytm QR code, Paytm soundbox, Paytm POS terminal linked to PPBL account or wallet, the RBI said they will not be able to avail the service after March 15, and should look for other alternatives.

”In order to avoid any inconvenience or disruption, it is suggested that you (merchant) may obtain a fresh QR code linked to an account with another bank or wallet to receive payments,” it said.

They may also change your bank account details (in which you receive payments) through your service provider.

However, it said if the Paytm QR code, Paytm soundbox or Paytm POS terminal are linked to another bank account, the arrangement will continue even after March 15.

”If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024,” the RBI said.

Meanwhile, Vijay Shekhar Sharma, Paytm founder and CEO, in a post on X said: ”Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15…Do not fall for any rumour or let anyone deter you to championing Digital India!”.

In March, 2022, the RBI had barred PPBL from onboarding new customers with immediate effect.

One97 Communications Ltd (OCL) , which owns Paytm brand, holds a 49 per cent stake in PPBL, but classifies it as an associate and not as a subsidiary.

The central bank further said settlement of all pipeline transactions in nodal accounts (in respect of all transactions initiated on or before February 29, 2024) will be completed by March 15, 2024 and no further transactions will be permitted thereafter.

However, the RBI added the nodal accounts of OCL and Paytm Payments Services Ltd maintained by PPBL are to be terminated at the earliest, in any case not later than February 29, 2024.


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