Paytm’s RBI directive partially modified, deadline for deposits, etc extended to March 15

In a move aimed at safeguarding public interest, the Reserve Bank of India (RBI) has issued partial modifications to its directions regarding Paytm Payments Bank, initially issued on January 31.

Effective immediately, the RBI has prohibited any deposits or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and NCMC (National Common Mobility Card) after March 15. This deadline extension from the previous date of February 29 signals a shift in regulatory oversight concerning the digital banking sector.

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However, customers of Paytm Payments Bank can continue to withdraw or utilize their balances without any restrictions, as previously stated by the RBI. Despite the restriction on deposits and top-ups, the bank will facilitate withdrawals up to the available balance from all accounts and wallets. Notably, this facilitation excludes accounts that have been frozen or marked with a lien by Law Enforcement or judicial authorities.

Furthermore, the RBI has clarified that Paytm Payments Bank will cease to provide banking services after March 15, an extension from the earlier deadline of February 29. This modification underscores the evolving regulatory landscape governing digital banking entities.