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The Reserve Bank of India (RBI) has officially extended the deadline for business restrictions as imposed on the Paytm Payments Bank Ltd (PPBL) till March 15 from the original February 29 deadline. RBI Governor Shaktikanta Das released 14-point FAQs that address various concerns of the stakeholders. We have summarized the information that you can read in a jiffy.
Post March 15, only debit will be allowed
The deadline for business restrictions on the PPBL has been officially extended to March 15th. It means you can still carry out debit and credit and other transactions on the platform as you like. However, post-March 15th, you can only debit, withdraw, or transfer funds from PPBL to other banks up to the balance available.
Once you have exhausted the available balance, the account will become dormant unless RBI revises its deadline or there’s any other development between PPBL and the RBI. Thus, no credits will be available after March 15th.
Refunds & cashback can be transfer post-deadline
When asked if refunds and cashbacks triggered to the PPBL account post the March 15 deadline will be transferable, Das said you can still avail cashback, refunds, and swee-in from partner banks post the deadline. Once received, you’ll have to transfer or withdraw the account from your PPBL account. However, no credits or deposits will be allowed after the deadline.
You won’t be able to use Paytm Payments Bank for salaries
Das made it clear that if someone is using a PPBL account to receive their salaries, they won’t be able to credit their salaries post-March 15th deadline. Thus, it is critical that if you have a PPBL account for salaries, make necessary arrangements before the deadline to avoid issues related to non-credit salaries.
You won’t get any subsidy or direct benefit transfers either
Post the March 15th deadline, you won’t be able to get any subsidy direct benefit transfers or any kind of credit to your PPBL account. Thus, it is crucial to make necessary arrangements before the deadline is due.
Automated transactions will cease post-nil balance
In case you have a withdrawal or debit mandate such as with the NACH in case of electricity or other bills with the PPBL, the due amount will be deducted from the account as usual until the balance is NIL. You can discontinue such instructions and reroute them to other accounts not operated by PPBL to avoid inconvenience.
In case of automated mandates with OTT platforms and others, it follows the same mechanism wherein the amount will be debited until the balance is available in your PPBL account.
What happens to the sweep-in/out balance with partner banks?
In case you have a sweep-in balance with partner banks to your account with PPBL with a ceiling of INR 2 Lacs per individual customer, you can withdraw the balance until it is nil. However, PPBL won’t be able to take any fresh credits or deposits post-March 15, 2024.
EMI of loans automatically paid through the PPBL account
As mentioned above, any automated transactions such as EMI of loans or other instructions, will be carried on until the account balance on your PPBL account becomes zero. However, we advise setting up auto-debits from other banks to continue paying the EMIs without any convenience and to avoid bouncing mandates that will attract penalties.
I have a wallet with Paytm Payments Bank
If you have a wallet with PPBL, you can continue to use, transfer, and withdraw an amount from this wallet to another wallet or account. In the case of minimum KYC wallets, you can continue to use them for merchant payments only until the balance is over.
Top-up or deposits in wallets hosted by PPBL?
As aforementioned, you won’t be able to top-up or deposit any amount to your wallet on PPBL and neither receive any refunds, cashback, or credits after March 15th.
Can I close my wallet on PPBL?
In case you have a wallet with PPBL and with balance, you can transfer the available balance to another wallet or bank account other than PPBL and continue using the same. However, you need to have a full KYC wallet to get the credit from the PPBL wallet. In the event of minimum wallets, you may reach out to PPBL for a refund.
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