Paytm Payments Bank crisis: RBI issues 30 FAQs after crackdown

The RBI on Friday extended the deadline for Paytm Payments Bank account holders, both customers and merchants, to move their assets and look for alternative banks till March 15. After this, the operations of the payments bank will be halted.

In the list of 30 FAQs released by RBI, it clarified that savings or current account holders with Paytm Payments Bank will be allowed to use, withdraw and transfer their funds from the account, but no new deposits or credits will be allowed in their account after the deadline.

The central bank further said that withdrawal or utilisation of balances by PPBL customers from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards will be permitted without any restrictions, up to their available balance even beyond March 15.

RBI’s FAQs on Paytm Payments Bank

I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024?

Yes, You can continue to use, withdraw or transfer your funds from your account upto the available balance in your account. You can also continue to use your Paytm Payments Bank debit card.

After March 15, 2024, you 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.

My salary is credited into my account with Paytm Payments Bank. Can I continue to receive my salary into this account?

No. After March 15, 2024, you will not be able to receive any such credits into your account with Paytm Payments Bank. It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.

I am expecting a refund in my account with Paytm Payments Bank after March 15, 2024. Can this refund be credited into my account?

Yes. Refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into your account even after March 15, 2024.

Read complete list of RBI FAQs on Paytm Payments Bank here

Can I still pay my monthly bills i.e. electricity bills, phone bills etc, through Paytm Bank Limited?

Withdrawal/debit mandates (such as National Automated Clearing House (NACH) 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, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

I have a FASTag issued by Paytm Payments Bank. Can I continue to use it to pay toll after March 15, 2024?

Yes. You can continue to use your FASTag to pay toll upto the available balance. However, no further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

What will happen to the Deposits maintained with partner banks through ‘sweep in/out’ arrangements, after March 15, 2024?

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. ₹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.

I receive a subsidy or certain direct benefit transfers linked to my Aadhar from the Government in my account with Paytm Payments Bank. Can I continue to receive it into this account?

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, 2024 to avoid any inconvenience or disruption.

The instalment (EMI) for my loan is automatically paid through my account with Paytm Payments Bank. Can this continue?

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. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements for setting up EMI payments through another bank before March 15, 2024.

I have a wallet with Paytm Payments Bank. Can I continue to use money from this wallet after March 15, 2024?

Yes. You can continue to use, withdraw or transfer to another wallet or bank account upto the balance available in the wallet. Minimum KYC wallets1 can, however, be used only for merchant payments.

I have a wallet with Paytm Payments Bank. Can I top-up or transfer money into this wallet after March 15, 2024? Can I receive money from any other person into this wallet after March 15, 2024?

No. After March 15, 2024 you 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.

I have a cashback due in my wallet with Paytm Payments Bank. Can I receive this cashback after March 15, 2024?

Yes. Refunds and cashbacks are allowed to be credited.

I have a wallet with Paytm Payments Bank. Can I close this wallet and have the balance transferred to my bank account with another bank?

Yes. You may approach Paytm Payments Bank or use its banking app to close your wallet and transfer the balance to an account maintained with another bank in the case of full KYC wallets. In the case of minimum KYC Wallets2, you may use the available balance or request for a refund.