BSE asks investors to register alternate bank accounts as Paytm Payment Bank's deadline nears

These restrictions could also affect investors' securities market transactions, according to the exchange.

Investors, who registered only Paytm Payments Bank accounts with their trading members (stock brokers), have been asked by BSE to register an account opened with another bank to avoid any disruption. A press release in this regard was issued by BSE on March 12.

On January 31, the Reserve Bank of India (RBI) imposed major business restrictions on PPBL, including accepting fresh deposits and doing credit transactions after February 29. The central bank later extended this deadline to March 15.

Also read: No concessions to Paytm Payments Bank; Bank likely to become dormant if RBI doesn’t lift curbs on March 15

After this new deadline, people will not be able to deposit money into their PPBL account. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited, said an RBI FAQ page.

These restrictions could also affect investors' securities market transactions if they do not have alternative bank accounts.

"Investors’ attention is drawn to recent regulatory action announced by the Reserve Bank of India vide its press releases dated January 31, 2024, and February 23, 2024 whereby they have put restrictions on Paytm Payments Bank Ltd., on further deposits, credit transactions, or top-ups to customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., effective March 15, 2024, with exceptions for interest, cashbacks, or refunds," said the BSE press release.

Also read: Paytm Payments Bank is not alone; RBI’s punitive actions in last five years

"Investors are hereby informed that these restrictions may impact the securities market transactions of those investors who have registered bank accounts of only Paytm Payments Bank Ltd., with their Trading members. In view of the same, investors are advised to review their current banking arrangements and add additional bank accounts with other banks to avoid any impact on transactions on account of the aforementioned RBI directive," it added.