Paytm Payments Bank has pushed back its deadline to cease all banking services from February 29 to March 15. The Reserve Bank of India, under Section 35A of the Banking Regulation Act, 1949, imposed specific business restrictions on Paytm Payments Bank Ltd through press releases dated March 11, 2022, and January 31, 2024.
In consideration of the customers’ interests, including merchants, who may require additional time to make alternative arrangements, the Reserve Bank of India has modified the earlier directions.
Paytm Payments Bank has extended its deadline for ceasing banking services from February 29 to March 15 following business restrictions imposed by the Reserve Bank of India. The RBI, under Section 35A of the Banking Regulation Act, 1949, modified earlier directives considering the interests of customers, including merchants. After March 15, 2024, no further deposits or credit transactions will be allowed, except for interest, cashbacks, sweep-ins from partner banks, or refunds. However, customers can withdraw or utilize balances without restrictions. Banking services, excluding withdrawals and balance utilization, will cease after March 15, though fund transfers for withdrawal purposes may still be permitted. Nodal accounts of associated entities must be closed by February 29, with pipeline transactions settled by March 15. The bank is directed to facilitate seamless withdrawals of customer deposits parked with partner banks. Additionally, a list of Frequently Asked Questions (FAQs) has been issued for customer convenience.
