The Reserve Bank of India (RBI)’s deadline for Paytm Payments Bank (PPBL) is set to end on March 15. On January 31, the banking regulator barred PPBL from accepting fresh deposits and doing credit transactions after February 29, which was later extended to March 15.
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, the RBI had said.
Paytm customers must be worried about the services that will stop working after the end of deadline. Here is a list of services that will stop or will remain operational after the deadline:
Withdrawal and transfer
Customers of the PPBL can withdraw and transfer money from their accounts after the deadline. No deposit of funds in the account will be allowed after the deadline except interest, cashbacks, sweep ins or refunds.
Customers can also not be able to transfer funds in to their PPBL accounts through UPI/IMPS after the deadline.
ALSO READ: BSE asks investors to register alternate bank accounts as Paytm Payment Bank's deadline nears
UPI
After the deadline ends on March 15, the UPI service of Paytm will continue to be operational.
The RBI on February 22 said customers and merchants having ‘@paytm’ handles are to be migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption.
For seamless migration of ‘@paytm’ handle to other banks, National Payments Corporation of India (NPCI) may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions, the RBI said.
This is because Paytm uses PPBL’s Payment Service Provider (PSP).
On March 14, National Payments Corporation of India (NPCI) has granted approval to One97 Communications Limited (OCL), Paytm's parent entity, to participate in UPI services as a Third-Party Application Provider (TPAP) under multi-bank model.
FASTag
Customers can continue to use their FASTag to pay toll upto the available balance. However, no further funding or top ups will be allowed in the FASTags issued by PPBL after March 15.
ALSO READ: NHAI advises Paytm FASTag users to switch to other bank FASTag before March 15
To ensure seamless travel experience and avoid inconvenience at toll plazas, National Highways Authority of India (NHAI) has advised Paytm FASTag users to procure a new FASTag issued by another bank before March 15, 2024.
The feature of transferring the balance from old FASTag issued by PPBL to new one will not be available.
Auto debit EMI’s
Auto debit mandates will continue to get executed till there is balance available in the PPBL account.
However, after March 15, credit or deposit in PPBL accounts will not be allowed. Therefore, to avoid inconvenience, RBI suggested customers to make alternative arrangements for setting up EMI payments through another bank before March 15.
Paytm wallet
The customers will not be able to use top-up and transfer facilities for PPBL wallets after March 15, but can use existing money from the wallet for transactions and payments.
National Common Mobility Card (NCMC) issued by PPBL
The customers be able to use their NCMC card upto the available balance. However, they will not be able to load or top up funds into the card after March 15.
QR codes and sound boxes
If your receipt and transfer of funds is linked to any bank account other than PPBL, you can continue to use this arrangement even after March 15, thanks to the clarification issued by the regulator under the FAQ.
After March 15, customers or merchants using PPBL bank account will not be able to receive any credit into their bank account or wallet with PPBL other than refunds, cashbacks, sweep-in from partner banks or interest. RBI suggested that users may obtain a fresh QR code linked to an account with another bank or wallet to receive payments. They can also change their bank account details (in which you receive payments) through your service provider.
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