Big relief to Paytm Payments Bank: RBI extends deadline, payment services to continue till March 15 date.

Paytm Payments Bank: There is major information for clients connected with Paytm Payment Bank. The Reserve Bank of India (RBI) has broadened the cutoff time for deposit and credit transactions to Paytm Payment Bank till March 15. Before that, RBI had made it abundantly clear that Paytm Payments Bank would not be used for any banking transactions after February 29.
On January 31, 2024, the Reserve Bank had given a request to stop the banking services of Paytm. For this, the organization was given a cutoff time of February 29, 2024. As indicated by this, Services like Paytm Payments Bank Account Transactions, Paytm Wallet, FASTag, and Topup will be shut down after February 29. But now this deadline has been extended till March 15.

RBI gives 15-day relaxation to Paytm, extends the date to 15th March from the earlier stipulated timeline of February 29, 2024. https://t.co/UH52h5DIz4 pic.twitter.com/VP7Ou34zua

— ANI (@ANI) February 16, 2024

 Paytm gets relief till March 15:

The RBI had requested under Section 35A of the Banking Regulation Act, 1949 to close the nodal records of One97 Communication Limited and Paytm Payment Services Limited Restricted before February 29, 2024, for any reason. Be that as it may, presently time has been given till March 15. RBI further said that remembering the interest of the public, Paytm Payments Bank Limited is being given some additional time.

What is the request from RBI for Paytm?

The RBI has chosen to ban the services of Paytm Payments Bank because of the lack found in the company’s report while auditing. The central bank said that irregularities were found in the data put together by the company. The bank has not clearly expressed in its structure for how long this ban will proceed. From this Paytm Payments Bank clients can not this service after one month.

“No further deposits or credit transactions or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, and so on. after March 15, 2024, stretched out from the prior specified timetable of February 29, 2024, other than any interest, cashback, clear in from partner banks or refunds which might be credited anytime,”

The large regulatory clampdown:

However, the regulator’s latest press release or the FAQ (frequently asked questions) do not give any significant concessions or relaxations to the embattled payments bank. On February 16, the RBI gave a FAQ on a move made against Paytm Payments Bank Ltd (PPBL), framing the various parts of the headings and guaranteeing that clients of the bank wouldn’t be impacted due to the central bank step. Likewise, the central bank has explained that current Paytm bank clients with available balances don’t have to stress. ” Be that as it may, with the end goal of administrations, for example, withdrawal or usage of available balance by clients or wallet holders, such fund transfers including AEPS, IMPS, and UPI might be permitted anytime,” the RBI said.

On March 11, 2022, the RBI banned Paytm Payments Bank from taking on new clients for the subsequent time, saying that it had violated know-your-customer or KYC standards. No further deposits, credit transactions, or top-ups are permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, and so on, after February 29, other than any interest, cashback, or discounts that might be credited anytime, the RBI said.

It is critical to take note that the RBI has just broadened the cutoff time on business limitations by about fourteen days. On the off chance that the regulator doesn’t lift the curbs on the payment bank by March 15, it will probably become dormant without authorization to acknowledge new deposits or do credit transactions.