New Delhi. The Reserve Bank of India (RBI) has provided a significant relief to Paytm by giving a moratorium of 15 days for its banking services. This means that the ban on transactions on Paytm Payments Bank, which was to come into effect from February 29, has been extended. Now, restrictions on Paytm Payments Bank will be implemented after March 15. As a result, transactions including Paytm wallet, Fastag and customer accounts can continue till March 15, 2024. Additionally, RBI has issued FAQs regarding Paytm.
Earlier, RBI had ordered closure of Paytm’s banking services on January 31, 2024, which was to be effective from February 29, 2024. However, this date has been revised. On January 31, the RBI had said that regulatory action has been taken against Paytm Payments Bank Ltd, run by its parent company One97 Communications, due to which services like transactions in Paytm Payments Bank accounts, Paytm Wallet, Fastag and TOP have been stopped. Increase after 29th February.
Keeping in mind the public interest, the extended time was given to the customers by RBI under Section 35A of the Banking Regulation Act, 1949. RBI has emphasized that this extension is being provided to Paytm Payments Bank Limited keeping in mind the interests of the customers.
Paytm issue | RBI gives 15-day relaxation to Paytm, extends the date to 15th March from the earlier stipulated timeline of February 29, 2024. RBI issues FAQ in the Paytm case. pic.twitter.com/D61arOWdAD
— ANI (@ANI) February 16, 2024
During this period, no other deposits, credit transactions or top-ups will be allowed. All services including customer accounts, prepaid wallets, FASTags and National Common Mobility Card will be discontinued after March 15, 2024. However, some services will continue even after March 15, such as refunds, cashback, sweep-in from partner banks and interest in Paytm Payments bank accounts. Customers will also be able to withdraw money from their account after March 15. The remaining balance in the wallet can also be used. Regarding the use of Paytm wallet, RBI has said that the amount deposited in the wallet can be used till March 15. However, after March 15, no additional deposits will be allowed, and only the remaining amount can be used.