Previously, Paytm Payments Bank was directed by the central bank to cease certain key operations after February 29, 2024. However, this deadline has now been prolonged to March 15, 2024, offering a brief respite for both the fintech company and its users.
In an effort to provide clarity amid the ongoing crisis, the central bank has issued a set of Frequently Asked Questions (FAQs) delineating the services that will remain operational for Paytm Payments Bank until the revised deadline of March 15, 2024.
Paytm Payments Bank FAQs
What happens to wallet services, FASTags, and NCMC cards?
Wallet services, FASTags, and NCMC cards provided by Paytm Payments Bank remain usable until the balance is depleted. However, no top-ups or recharges will be permitted after March 15, 2024.
Customers are encouraged to obtain new FASTags or NCMC cards from alternative banks to prevent any inconvenience.
What happens to bank accounts with Paytm Payments Bank?
Customers retain the ability to withdraw funds from their savings or current accounts with Paytm Payments Bank until March 15, 2024.
Additionally, debit cards issued by Paytm Payments Bank remain functional for withdrawals or transfers until the same date.
What happens to deposits and transfers?
Deposits or transfers into Paytm Payments Bank accounts will be restricted after March 15, 2024, except for specific permissible credits like interest, cashbacks, sweep-ins from partner banks, or refunds.
Furthermore, existing deposits held with partner banks through ‘sweep in/out’ arrangements can be transferred back to Paytm Payments Bank accounts within defined limits.
What happens to business operations for merchants?
Following March 15, 2024, merchants utilizing Paytm QR codes, soundboxes, or POS terminals associated with Paytm Payments Bank accounts must arrange alternative methods for receiving payments.
Salary and government benefits:
Salary deposits into Paytm Payments Bank accounts will discontinue after March 15, 2024. Customers are encouraged to establish alternative arrangements for receiving their salary. Additionally, subsidies or direct benefit transfers linked to Aadhar will no longer be credited into Paytm Payments Bank accounts after the specified deadline.
Automatic payments and EMIs:
Automatic payments for utilities like electricity bills, OTT subscriptions, and EMIs will persist as long as there are sufficient funds in the account. However, no additional credits or deposits will be accepted after March 15, 2024.
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