Paytm: In a recent development, Paytm Payments Bank Ltd (PPBL) faces restrictions from the Reserve Bank of India (RBI), impacting both existing and potential customers. Here’s a comprehensive guide to navigate through this situation.
Understanding the Restrictions
On January 31, 2024, the RBI imposed limitations on PPBL, prohibiting new customer enrollments and imposing operational constraints. Although the initial deadline for the cessation of services was February 29, 2024, it has been extended to March 15, 2024.
Addressing Customer Concerns
What to Do with Paytm Bank Balance?
Existing customers can rest assured that their funds in Paytm Payments Bank are secure. They have the option to withdraw the funds or seamlessly transfer them to another bank account. The RBI has emphasized that customers can initiate these transactions without any hindrance.
FASTag and NCMC Card Usage
Customers are permitted to utilise the FASTag service until either February 29 or until their Paytm Bank account maintains a balance. Settlements are authorized until February 29, as specified by the RBI. Subsequently, customers have until March 15 to conclude all transactions. Paytm asserts that its FASTag functionality will persist as long as there is a balance in the account.
Safety of Deposits
It’s crucial for customers to understand that their deposits in Paytm Payments Bank are entirely safe. This assurance stems from the fact that these deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), an entity operating under the purview of the RBI. In the event of any disruption, DICGC steps in to safeguard the interests of depositors.
DICGC Insurance Coverage
PPBL’s deposits are covered by DICGC, ensuring that individual deposits are protected up to a maximum of 5 lakh rupees. This coverage aligns with the regulatory standards mandated by the RBI for all banks operating in India, including commercial banks, local banks, regional rural banks, and foreign banks.
