RBI Extends Paytm Payments Bank Restrictions Deadline to March 15

New Delhi: The Reserve Bank of India (RBI) has announced an extension of the deadline for Paytm Payments Bank (PPBL) customers regarding certain transactions. Customers now have until March 15 instead of the previous deadline of February 29 to refrain from making further deposits, credit transactions, or top-ups in various accounts and instruments, including wallets, FASTags, and National Common Mobility Cards.

Additionally, the deadline for PPBL to cease providing certain banking services, apart from those specified, has also been extended to March 15 from the original February 29 cutoff.

This move comes after the RBI issued Frequently Asked Questions (FAQs) regarding the actions taken against PPBL on February 16, ensuring that customers would not face any adverse impacts due to the regulatory measures.

The RBI’s decision to issue FAQs follows remarks made by RBI Governor Shaktikanta Das during the February monetary policy announcement. Governor Das stated that the central bank would address queries received in recent days through an FAQ, which was expected to be released in the following week.

The RBI had previously imposed significant business restrictions on PPBL on January 31, including the prohibition of accepting fresh deposits and conducting credit transactions after February 29. These actions were taken due to identified irregularities in KYC compliance, posing risks to customers, depositors, and wallet holders.

The central bank’s decision stemmed from a comprehensive audit report revealing persistent non-compliance and supervisory concerns within PPBL, necessitating further regulatory action.

Furthermore, on March 11, 2022, the RBI imposed a second ban on PPBL from onboarding new customers, citing violations of KYC norms.

Following the RBI’s directives, customers are reminded that no further deposits, credit transactions, or top-ups are permitted in various accounts and instruments after February 29, except for interest, cashbacks, or refunds credited at any time.