The deadline for terminating transactions at Paytm Payments Bank, a division of One 97 Communications, or Paytm, was extended by the Reserve Bank of India (RBI) on Friday by 15 days. Clients may now deposit funds into their accounts, wallets, FASTags, and prepaid cards through March 15th.
The central bank emphasised that the decision was in the best interests of the public and stated that the delay intends to meet the needs of the payments bank’s customers and merchants who might need additional time to make other arrangements.
Citing extensive regulatory non-compliance and supervisory concerns, the RBI on January 31 ordered Paytm Payments Bank to cease taking deposits or top-ups in client accounts, wallets, FASTags, and other instruments after February 29.
RBI said on Friday that after March 15 (extended from the previously announced deadline of February 29), “no further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc., other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime.”
In a related development, the RBI said on Friday that companies who take payments using Paytm QR codes, Paytm soundboxes, or Paytm PoS (point-of-sale) terminals may keep using them even after March 15th, provided that the money’ reception and transfer are connected to bank accounts other than Paytm Payments Bank.
The time for terminating One97 Communications and Paytm Payments Services nodal accounts, which are hosted by Paytm Payments Bank, hasn’t been extended, nevertheless.
As of March 31, 2023, One97 Communications Ltd has a 49% share in Paytm Payments Bank. One of its subsidiaries is Paytm Payment Services.
Nodal accounts store client payments until they are settled with the merchants, acting as a middleman between consumers, merchants, and financial organisations like payment aggregators and gateways.
The Reserve Bank of India has reaffirmed that there are no limitations on consumers who wish to use or withdraw funds from their accounts.
The statement said, “Withdrawals from all accounts and wallets, excluding those that are frozen or lien marked by law enforcement or judicial authorities, should be facilitated by the bank up to their available balance.”
 on Friday extended by 15 days the deadline for ending transactions at Paytm Payments Bank, a part of One 97 Communications, or Paytm.){kind=link}