Since the Reserve Bank of India (RBI) announced the ban on Paytm Payments Bank on January 31, a lot of buzz was in the market regarding what is on and what is off.
On Friday, giving some relief to the business, the RBI has further extended the date to stop all transactions for Paytm Payments Bank till March 15.
Also, the central bank has released a set of Frequently Asked Questions where it has come up with the detailed answers on what will work and what not, once the Payments Bank ceases to operate.
For Current and Savings account holders
According to RBI statement, the savings or current account holders with Paytm Payments Bank can continue to withdraw or transfer funds from this account after March 15, 2024.
They can also continue to use debit card to withdraw or transfer funds upto the available balance in your account.
However, after March 15, users will not be able to deposit money into their account with Paytm Payments Bank. Also, no credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.
Deposits maintained with partner banks
The existing Deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank, the RBI said in a statement.
Notably, the ceiling is prescribes at Rs 2 lakh per individual customer at the end of day.
Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024, the RBI said.
What will happen with salary and EMI linked with Paytm Payments Bank?
After March 15, the users will not be able to receive any salary credits into account with Paytm Payments Bank.
It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience, RBI said.
For the EMIs of loan, which is automatically paid through the account with Paytm Payments Bank, the auto debit mandates will continue to get executed till there is balance available in your account.
After March 15, 2024, credit or deposit in your accounts will not be allowed.
However for the EMI of any loan which is automatically paid through account with a bank other than Paytm Payments Bank, can continue.
OTT subscription, electricity bills and rewards
As mentioned earlier too, the refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into your account even after March 15, 2024.
Withdrawal/debit mandates, such as National Automated Clearing House (NACH) mandates, will continue to get executed till there is balance available in your account.
For OTT subscriptions, the withdrawal/debit mandates through automatic UPI mandates will continue to get executed till there is balance available in your account.
However, after March 15, 2024, both the above activities will not be allowed.
What will happen with the Paytm Wallet?
RBI clarified that the users can continue to use, withdraw or transfer to another wallet or bank account upto the balance available in the wallet.
However, after March 15, users will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet.
Refunds and cashbacks are allowed to be credited.
For merchants using QR code
For a merchant accepting payments using a Paytm QR code, Paytm soundbox or Paytm POS terminal, linked to another bank account, not with Paytm Payments Bank, users can continue to use this arrangement even after March 15.
For those who accept payments using a Paytm QR code, Paytm soundbox, Paytm POS terminal linked to bank account or wallet with Paytm Payments Bank, merchants will not be able to receive any credit into your bank account or wallet with Paytm Payments Bank other than refunds, cashbacks, sweep-in from partner banks or interest after March 15.
