RBI has published a comprehensive set of Frequently Asked Questions (FAQs) to provide clarity on the functioning of Paytm Payments Bank post the its closure. Here’s everything you need to know about FASTag, UPI, Paytm Wallet, saving, current account.
New Delhi: The Reserve Bank of India (RBI) created a stir in the market when it announced the ban on Paytm Payments Bank on January 31. This decision left many wondering about the implications. However, on Friday, the RBI offered some respite to businesses by extending the deadline to halt all transactions for Paytm Payments Bank until March 15. Additionally, the central bank has published a comprehensive set of Frequently Asked Questions (FAQs) to provide clarity on the functioning post the bank’s closure. RBI Governor Shaktikanta Das emphasized that the FAQ document aims to address the concerns of all stakeholders.
The FAQs shed light on what services will continue and what will cease to exist once the Payments Bank stops its operations. It is important as it will ensure transparency and understanding among users and businesses.
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FAQs by RBI for Paytm Payments Bank account holders
1) What will happen to current and savings account holders?
According to RBI statement, the savings or current account holders with Paytm Payments Bank can continue to withdraw or transfer funds from this account after March 15, 2024.
They can also continue to use debit card to withdraw or transfer funds upto the available balance in your account.
After March 15, 2024, they will not be able to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.
2) Refund into Paytm Payments Bank after March 15?
Yes. Refunds, cashbacks, sweep-ins from partner banks or interest are permitted credits into your account even after March 15, 2024
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3) What will happen to the deposits maintained with partner banks through ‘sweep in/out’ arrangements
The existing deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. Rs 2 lakh per individual customer at the end of day). Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024.
4) What will happen with salary and EMI linked with Paytm Payments Bank?
After March 15, the users will not be able to receive any salary credits into account with Paytm Payments Bank. It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.
For the EMIs of loan, which is automatically paid through the account with Paytm Payments Bank, the auto debit mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed.
5) OTT subscription, electricity bills and rewards
Withdrawal/debit mandates through automatic UPI mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience or disruption, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.
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6) Subsidy or certain direct benefit on Paytm Payments Bank
No. After March 15, 2024, you will not be able to receive any such credit into your account with Paytm Payments Bank. Please arrange to change your linked account to another bank before March 15 to avoid any inconvenience or disruption.
7) What will happen with the Paytm Wallet?
RBI clarified that the users can continue to use, withdraw or transfer to another wallet or bank account upto the balance available in the wallet. However, after March 15, users will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet. Refunds and cashbacks are allowed to be credited.
