Paytm Payments Bank got 15 day extension from RBI, now transactions can be completed till March 15.

Paytm Payments Bank has received a 15-day extension from the Reserve Bank, allowing it to continue processing transactions until March 15. Along with this, the central bank has produced FAQs (Frequently Asked Questions and Answers) to help Paytm Payments Bank clients.

PAYTM PAYMENTS BANK

The Reserve Bank of India (RBI) on Friday extended the deadline for Paytm Payment Bank deposit and credit operations to March 15. Along with this, the RBI has produced FAQ (Frequently Asked Questions and Answers) to help Paytm Payments Bank clients. The central bank has provided information about Paytm Payments Bank withdrawals, refunds, salary credits, DBT, and power bill deposits via this FAQ.

This decision was made by the RBI after the bank (PPBL) expressed concerns concerning consumers and regulatory bodies. "No further deposit or credit transaction in any customer account, prepaid instruments, wallet, Fastag, National Common Mobility Card, etc. after March 15, 2024 (extended from the pre-determined deadline of February 29, 2024)," the Reserve Bank of India (RBI) stated. or top up will not be permitted. However, any interest, cashback, sweep in, or refund from partner banks, for example, may be credited at any time."

The central bank issued a directive on January 31 to discontinue taking deposits or top-ups in any client accounts, wallets, Fastag, or other instruments after February 29, 2024. The RBI stated that a detailed system audit report and external auditors' verification report revealed Paytm Payments Bank Limited's noncompliance with the standards. Following that, the Central Bank is conducting an investigation. On Friday, February 16, 2024, the RBI also posted a list of frequently asked questions on the Paytm problem.

Paytm moved its account to Axis Bank. One97 Communications, the fintech business that owns the Paytm brand, has moved its nodal account from Paytm Payments Bank to Axis Bank. This action allows Paytm QR, Soundbox, and Card Machine services to continue even beyond the Reserve Bank of India's March 15 deadline. The Reserve Bank has instructed Paytm Payment Bank Limited's (PPBL) clients and merchants to move their accounts to other banks by March 15. In a regulatory filing, the business stated that it has moved its nodal account to Axis Bank (by forming an escrow account) to ensure that merchant settlements proceed seamlessly.