Extension of Deadline: The Reserve Bank of India (RBI) has extended the deadline for the operations of Paytm Payments Bank Limited (PPBL) from February 29, 2024, to March 15, 2024, granting a brief reprieve for the fintech company and its users.

Functional Services Until March 15, 2024:

Wallet services, FASTags, and National Common Mobility Cards (NCMC) can continue to be utilized until the balance is exhausted.

Withdrawals from Paytm bank accounts are permitted until the extended deadline of March 15, 2024.

Release of FAQs: To provide clarity amidst the ongoing situation, the RBI has issued a set of Frequently Asked Questions (FAQs) outlining the operational services that will remain available for PPBL until March 15, 2024. These FAQs aim to address concerns and guide both the users and the general public.

15-Day Extension: The RBI’s decision to extend the deadline until March 15, 2024, for PPBL to cease deposits, credit transactions, or top-ups in customer accounts, wallets, and FASTags, is motivated by considerations of customer interest, including that of merchants.

Facilitation of Withdrawals: PPBL is directed to ensure a seamless withdrawal process for customer deposits held with partner banks under the automatic ‘sweep-in sweep-out’ facility. This directive aims to prevent inconvenience to customers while complying with regulatory requirements.

Rationale for RBI Action: The central bank’s actions against PPBL stem from persistent non-compliance and continued material supervisory concerns, necessitating further supervisory measures to address underlying issues.

Release of Additional FAQs: Alongside the deadline extension, the RBI has issued additional FAQs to aid PPBL customers and the broader public in understanding the implications of the regulatory action and navigating potential transitions.

Impact on Merchants: Notably, the widely used Paytm QR code and Soundbox by merchants will remain unaffected if linked to accounts with other banks, according to the RBI’s FAQs. Merchants can continue using these services beyond March 15, provided they are associated with bank accounts other than PPBL.

Continuation of Services for Merchants with Alternate Bank Accounts: Merchants using Paytm QR codes, Soundbox, or POS terminals linked to bank accounts other than PPBL can continue using these setups beyond March 15, as long as fund transactions are routed through non-PPBL accounts.

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