Auto debit mandates of EMI to continue till available balance in Paytm Payments Bank

Paytm Payments Bank

The Reserve Bank of India (RBI) on February 16 in the Frequently Asked Questions (FAQ) said auto debit mandates of EMI will continue till the available balance in Paytm Payments Bank and customers have to make arrangements with another bank before March 15 for further execution.

“Auto debit mandates will continue to get executed till there is a balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed,” RBI said in a FAQ.

The central bank further added that to avoid inconvenience, it is suggested that you make alternative arrangements for setting up EMI payments through another bank before March 15, 2024.

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Apart from this, electricity bills and OTT subscription mandates will be available on balance.

On January 31, the RBI imposed major business restrictions on Paytm Payments Bank, including a bar on accepting fresh deposits and doing credit transactions after February 29.

Now, the central bank partially extended the deadline to March 15 for accepting deposits and credit transactions.

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The regulator found major irregularities in KYC, which exposed the customers, depositors and wallet holders to serious risks.

The RBI on January 31 said it had imposed business restrictions on Paytm Payments Bank. The central bank said a comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action.

On March 11, 2022, the RBI had for the second time barred Paytm Payments Bank from taking on new customers, saying that it had violated Know Your Customer or KYC norms.

No further deposits or credit transactions or top-ups are allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29, other than any interest, cashbacks or refunds that may be credited anytime, the RBI said.