The Reserve Bank of India (RBI), on February 16, in the Frequently Asked Questions (FAQ) said Paytm Payments Bank customers can make payments from their accounts through Bharat Bill Payment System up to the balance available.
“You can continue to make payments from your Paytm Payments Bank account through Bharat Bill Payment System up to the balance available in your account,” RBI said in FAQ.
The central bank added that since the customer will not be able to credit any further funds into your accounts or wallets with Paytm Payments Bank after March 15, 2024, it is advised that the customer may make alternative arrangements with another bank account for BBPS before March 15, 2024.
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 extends deadline to March 15 for accepting deposits and credit transactions.
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-compliances 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.
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