What are RBI's new restrictions for Paytm Payment's Bank? All you need to know about its aftermath

The latest directive from the RBI prohibits Paytm Payments Bank from accepting new deposits, credit transactions, or top-ups until March 15, 2024.

Author
Mayank Kasyap
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Courtesy: Wikimedia Commons

New Delhi: Paytm Payments Bank finds itself under continued scrutiny as the Reserve Bank of India (RBI) extends the deadline for imposing restrictions on its operations. The latest directive from the RBI prohibits Paytm Payments Bank from accepting new deposits, credit transactions, or top-ups until March 15, 2024, extending the previous deadline set for February 29, 2024.

Question: What are RBI's new guidelines?

Answer: In a press release dated February 16, 2024, the RBI outlined the revised restrictions, emphasizing that after March 15, 2024, no further deposits, credit transactions, or top-ups will be permitted in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, and other associated platforms.

Question: What was Paytm's official response?

Answer: Addressing the directive, Paytm issued a statement on its official website reassuring customers about the safety of their funds. While acknowledging the imposed restrictions, Paytm emphasized that existing balances in accounts or wallets remain secure, and customers can continue to withdraw funds beyond the stipulated deadline.

Question: Will Paytm Wallet function after March 15?

Answer: Paytm assures customers that existing balances can be withdrawn after March 15, 2024. However, new deposits or transactions will not be facilitated beyond this date.

Question: Is your money safe?

Answer: Existing balances in Paytm accounts or wallets are secure, and customers can withdraw funds as needed, even after March 15, 2024.

Question: Can you continue using Paytm for recharges, bill payments?

Answer: Yes, all services on the Paytm app, including bill payments and recharges, remain unaffected by the directive.

Question: Will you be able to book tickets through Paytm?

Answer: All services on the Paytm app, including ticket bookings for travel and movies, will continue without disruption.

Question: Can you use Paytm QR code, Soundbox or card machine?

Answer: Paytm's QR code, Soundbox, and Card Machine functionalities will remain operational as usual.

Question: Can I still use Paytm Payments Bank wallet?

Answer: Customers can use, withdraw, or transfer funds from their Paytm Payments Bank Wallet until the balance is available. However, new deposits will not be accepted after March 15, 2024.

Question: What about FASTag/NCMC card issued by Paytm Payments Bank?

Answer: FASTag / NCMC Card issued by Paytm Payments Bank can still be used post-March 15, 2024, but recharges or additions to the card will not be possible. Customers can opt to use the remaining balance or request a refund.

Question: How to transfer money from Paytm wallet to bank account?

Answer: For users looking to transfer funds from their Paytm wallet to a bank account, the process remains straightforward:

Step 1: Open the Paytm app and tap on Wallet.
Step 2: Select 'Send Money to Bank.'
Step 3: Enter the recipient's account details, including account number, name, and IFSC code.
Step 4: Specify the transfer amount and, optionally, the reason for the transaction.
Step 5: Confirm the details and proceed to complete the transaction.

With these steps, users can seamlessly transfer funds from their Paytm wallet to their bank account, ensuring continued accessibility to their finances.