As the deadline set by the Reserve Bank of India (RBI) for Paytm Payments Bank Ltd (PPBL) approaches, several services are set to be affected due to regulatory restrictions. Here’s what you need to know:
Background:
The RBI imposed restrictions on PPBL on January 31, 2024, citing non-compliance issues and supervisory concerns. These restrictions prevented the bank from accepting fresh deposits or top-ups after February 29, 2024. The deadline was later extended to March 15, 2024.
Paytm Services Affected:
- Wallet Top-ups and Transfers:
- Customers won’t be able to add funds to their wallets or transfer money into them, except for cashback or refunds.
- Deposits into PPBL Accounts:
- No new deposits will be accepted into customers’ PPBL accounts after March 15, 2024, except for certain credits like interest or cashback.
- Salary Credits:
- Salary credits into PPBL accounts will cease after the deadline.
- Subsidies or Direct Benefit Transfers:
- Credits of subsidies or certain direct benefit transfers will stop after March 15, 2024.
- FASTag Recharge and Balance Transfer:
- Recharging PPBL-issued FASTags and transferring balances between them will not be possible.
- Transfers via UPI/IMPS:
- Funds cannot be transferred into PPBL accounts through UPI/IMPS after March 15, 2024.
UPI Services:
The status of UPI services post-March 15 is uncertain and subject to discussions between Paytm and the National Payments Corporation of India (NPCI), as guided by the RBI.
Paytm Services Unaffected:
- Withdrawals from PPBL Accounts:
- Customers can still withdraw or transfer funds from their accounts within the available balance limit.
- Refunds:
- Refunds, cashbacks, and interest can still be credited to customers’ accounts.
- Monthly Bill Auto-deduction:
- Automatic deductions for monthly expenses will continue until sufficient funds are available.
- Auto Debit for EMIs:
- Auto-debit mandates for loan EMIs will be honoured if there are enough funds in the account.
- Utility Bill Payments:
- Users can pay various utility bills conveniently through the Paytm app.
- Insurance Services:
- Insurance policies can be purchased, and premiums can be paid through the Paytm app.
- FASTag Services:
- Recharging existing FASTags and purchasing from other partnered banks will remain operational until March 15, 2024.
- Investments and Gold:
- Investment services and digital gold transactions through Paytm Money are unaffected.
- Credit Card Payments:
- Users can continue to settle their credit card bills through the Paytm app.
Conclusion:
While certain services will be affected by the RBI’s restrictions on PPBL, many essential functionalities will remain accessible to users. Customers are advised to take note of these changes and make alternative arrangements if necessary.
