The Reserve Bank of India has advised Paytm Payments Bank to cease taking deposits or top-ups in client accounts, wallets, FASTags, and other instruments from March 15. Here is what you should know:
Paytm Payments Bank (PPBL) will discontinue services including as deposits, credit transactions, and FASTag recharges from March 15, in accordance with Reserve Bank of India directives.
Notably, this deadline has been extended. The RBI asked PPBL on January 31 to stop taking deposits or top-ups in client accounts, wallets, FASTags, and other instruments after February 29, citing concerns about widespread regulatory noncompliance and supervisory difficulties.
The financial business was found to have violated know-your-customer (KYC) regulations and other RBI-mandated protocols.
Aside from the RBI, the BSE has released instructions for investors to follow when utilizing the payments bank for stock trading, and the NHAI has removed it from the list of FASTag alternatives, according to Mint.
So, as clients, what do you need to know before PPBL discontinues services? Look here.
What Will Be Affected: Everything You Need to Know
Customers will no longer be able to deposit money into their PPBL accounts starting March 15. Similarly, salary credit, direct benefit payments, and subsidies through PPBL accounts would be discontinued.
UPI and IMPS Functions: Beginning March 15, customers will be unable to access the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) functions via their PPBL accounts.
Customers will be able to continue withdrawing and transferring money from their PPBL accounts. Aside from that, refunds, prizes, and cashback will be conducted through partner banks.
Wallet Functions: Customers will be unable to top-up or transfer funds from their PPBL wallets after March 15. They will be able to use existing funds from their wallets for transactions and payments.
Customers will be unable to recharge their PPBL-issued FASTags. The National Highways Authority of India (NHAI) advised Paytm FASTag users to get a fresh one issued by another bank as soon as possible to ensure a smooth travel experience and minimize inconvenience at toll plazas.
Customers would also be unable to recharge or top up cash on their PPBL-issued National Common Mobility Cards (NCMCs).
For Merchants: According to the RBI, merchants or businesses who take payments using a Paytm QR code, Paytm soundbox, or Paytm PoS (point-of-sale) terminal can continue to do so even after March 15 if their monies are received and transferred to a bank account other than the PPBL.
