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RBI has given a two-week breather to merchants and customers of Paytm Payments Bank “who may require a little more time to make alternative arrangements.” The central bank extended the deadline for banking services and transactions in wallets, FASTags, and NCMC cards till March 15 from February 29 earlier.
“No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashbacks, sweep-ins from partner banks, or refunds which may be credited anytime,” it said in a release.
It also extended the deadline for banking services by the payments bank, including fund transfers, bill payments, and UPI facilities, till March 15.
However, the deadline for closing the nodal accounts of One97 Communications and Paytm Payments Services, maintained by Paytm Payments Bank, was retained at February 29. Settlement of all pipeline transactions in nodal accounts will need to be completed by March 15, as stipulated in the earlier guidelines.
Meanwhile, Paytm said it has shifted its nodal account to Axis Bank by opening an escrow account to “continue seamless merchant settlements as before.” This arrangement is expected to replace One 97 Communication’s nodal account with Paytm Payments Bank, it said, adding that subsidiary Paytm Payment Services has been using Axis Bank’s services since inception.
- Also read: Paytm’s wallet issue: Explained
Deposit/wallet balances
The RBI reiterated that withdrawal or utilisation of an available account or wallet balance will be allowed even after March 15. This includes savings and current accounts, prepaid instruments, FASTags, and NCMC card balances.
“Withdrawals up to their available balance should be facilitated by the bank from all accounts and wallets, excluding the ones that are frozen or lien-marked by law enforcement or judicial authorities.”
“Any lien or freeze (full or partial) marked as per the instructions of any law enforcement or judicial authorities on the account/wallet of a customer with Paytm Payments Bank will continue to be governed by the orders passed by such authorities,” it said in a FAQ (Frequently Asked Questions) issued separately.
It also directed Paytm Bank to facilitate seamless withdrawal of customer deposits that are parked with partner banks under the automatic ’sweep-in sweep-out’ facility.
In the FAQ, RBI clarified that merchants can continue to receive or transfer funds via a Paytm QR code, soundbox, or PoS terminals linked to a bank other than Paytm Payments Bank, even after March 15.
“Paytm QR, Soundbox, and EDC (card machine) will continue to work like always, even after March 15. The latest FAQ issued by the RBI clarifies it unambiguously. Do not fall for any rumour or let anyone deter you from championing Digital India!,” Founder Vijay Shekhar Sharma wrote on microblogging platform ‘X’.
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