Paytm: The Reserve Bank of India (RBI) has extended till March 15th the deadline for Paytm Payments Bank to cease operations following the discovery of anomalies in the bank’s customer know your customer (KYC) data. The RBI released a list of commonly asked questions (FAQs) to allay the concerns of Paytm bank account holders and ensure a seamless transition for both users and merchants.
RBI Clarifies Actions for Paytm Bank Users in FAQ Revision
The RBI provided clarification on what consumers should do if their Paytm Payments Bank account is used to receive their paycheck and if it is also used to pay monthly bills and subscriptions in its revised list of frequently asked questions.
Amidst the present onslaught against the company, the RBI recommended all Paytm bank users to move their business and assets to other banks in its earlier notification. Customers can still use the bank-issued debit card and make withdrawals from their Paytm Payments Bank accounts, nevertheless.
RBI Imposes Limit on Deposits and Credits Post March 15
The central bank also stated that as no deposits or credits into the account are permitted after March 15, one will not be able to get their salary in the Paytm bank account after that date.
Top 10 RBI FAQs for Bank Customers Who Use Paytm Payments
I have a Paytm Payments Bank current or savings account. After March 15, 2024, will I be able to withdraw money from this account? Can I keep using the Paytm Payments Bank debit card that I was issued?
Yess, Up to the amount that is still accessible in your account, you are free to use, withdraw, or transfer money. In a similar vein, you can keep using your debit card to make withdrawals or transfers of money up to the amount that is available in your account.
I have a Paytm Payments Bank current account or savings account. After March 15, 2024, may I make a deposit or a transfer of funds into this account?
No, you won’t be able to make deposits into your Paytm Payments Bank account after March 15, 2024. Other than interest, cashbacks, sweep-ins from partner banks, and refunds, no credits or deposits are permitted.
After March 15, 2024, I hope to receive a reimbursement in my Paytm Payments Bank account. Can I get my account credited with this refund?
Yes, It is still possible for your account to be credited with interest, sweep-ins from partner banks, refunds, and cashbacks beyond March 15, 2024.
After March 15, 2024, what will happen to the deposits kept with partner banks under “sweep in/out” agreements?
Customers of Paytm Payments Bank who have deposits with partner banks can return such deposits to Paytm Payments Bank accounts through a process known as “sweep-in,” provided that they stay below the Payments Bank’s prescribed balance cap of ₹2 lakh per customer per day. Such sweep-ins will still be permitted in order to make the amounts available for the consumer to utilise or remove. But after March 15, 2024, no new deposits made through Paytm Payments Bank with partner banks would be accepted.
My Paytm Payments Bank account is credited with my salary. Is it possible for me to keep getting paid into this account?
No, you won’t be able to get any such credits into your Paytm Payments Bank account after March 15, 2024. To prevent difficulty, it is advised that you make new plans with a different bank by March 15, 2024.
I get a government subsidy or any direct benefit payments connected to my Aadhar in my Paytm Payments Bank account. Is it possible for me to keep getting it in this account?
No, you won’t be able to get any such credit into your Paytm Payments Bank account after March 15, 2024. Before March 15, 2024, please make arrangements to switch your linked account to a different bank in order to minimise any trouble or disturbance.
Does Paytm Bank Limited automatically deduct my monthly electricity payment from my bank account? Is it possible for this to continue?
Mandates for withdrawals or debits, such as those from the National Automated Clearing House (NACH), will be carried out up until your account balance is exhausted. Nevertheless, credit or deposits into your accounts will not be accepted after March 15, 2024. Therefore, it is advised that you make new arrangements through a different bank by March 15, 2024, in order to avoid any inconvenience.
I use Paytm Payments Bank’s UPI to automatically deduct my monthly OTT subscription payment from my bank account. Is it possible for this to continue?
Automatic UPI mandates for withdrawals and debits will keep executing as long as there is money in your account. Nevertheless, credit or deposits into your accounts will not be accepted after March 15, 2024. Therefore, it is advised that you make additional arrangements with a different bank by March 15, 2024, to minimise annoyance or disturbance.
My Paytm Payments Bank account is used to automatically pay my loan’s installment (EMI). Is it possible for this to continue?
Mandates for auto debits will keep happening as long as there is money in your account. Nevertheless, credit or deposits into your accounts will not be accepted after March 15, 2024. It is therefore advised that, before March 15, 2024, you negotiate alternate arrangements for setting up EMI payments with another bank in order to avoid inconvenience.
My loan’s installment payments (EMI) are automatically deducted from my account at a bank other than Paytm Payments Bank. Is it possible for this to continue?
You can still make EMIs if you’re registered with a bank other than Paytm Payments Bank.
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