Paytm Payments Bank customers can use money in wallet till balance available: RBI FAQ

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The Reserve Bank of India (RBI) on February 16 in the Frequently Asked Questions (FAQ) said customers of Paytm Payments Bank (PPBL) will be able to use the money in their wallet till balance is available.

Customers can withdraw or transfer wallet money to another bank account or another wallet up to the balance available, the RBI said.

“You can continue to use, withdraw or transfer to another wallet or bank account up to the balance available in the wallet. Minimum KYC wallets can, however, be used only for merchant payments,” RBI said in FAQ.

Paytm to partner with Axis Bank for settlement of merchant payments

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 announced a partial extension of the deadline to March 15 for accepting deposits and credit transactions.

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

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

No FASTag recharge to be allowed via Paytm payment bank post March 15

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.