In order to ensure the convenience of both consumers and businesses, the RBI has granted Paytm Payments Bank until March 15th to shut down the majority of its activities, including those pertaining to deposits and withdrawals. This will enable them to organize other arrangements more easily. In the meantime, Axis Bank has taken over the nodal accounts of Paytm Payments Bank, which was formerly owned by One97 Communications, the founder of Paytm.

Customers of Paytm Payments Bank and the general public can see a list of commonly asked questions issued by the banking authority. Numerous aspects of the case have been made clear in this. The Paytm POS machine, Paytm Soundbox, and Paytm QR Code will keep operating normally if they are connected to another bank account. However, after March 15, transactions using POS systems, QR codes, and Soundboxes connected to Paytm Payments Bank would not be permitted.

RBI made it clear that after March 15, Paytm Payments Bank will be unable to offer any form of banking services, including UPI. Its deadline of February 29 was set earlier. RBI has instructed Paytm Payments Bank to remove all of the money that is accessible from each of its wallets and accounts, with the exception of those that have been placed on hold by court or law enforcement bodies.

In addition, the RBI has requested that Paytm Payments Bank facilitate the automated sweep-in and sweep-out feature for consumers’ deposits in partner banks. The regulator made it clear that after March 15, partner banks will still offer refunds, rebates, and sweep-in services. In addition, the RBI announced that users of Paytm Payments Bank would still be able to access and withdraw money from their accounts (savings, current, prepaid, Fastag, and National Common Mobility Card) even after March 15. This feature will only be accessible as long as funds are present in the relevant account. Customers of Paytm Payments Bank will not be allowed to make deposits into their accounts after March 15.

To minimize any hardship, the Reserve Bank has advised its clients to make other plans with any other bank by March 15. Customers would not be allowed to deposit pension funds or salaries into Paytm Payments Bank accounts from March 15, according to RBI clarification. Clients using Paytm Payments Bank for OTT subscriptions or monthly installment payments would also need to make other plans. Consumers who have a Paytm Payments Bank wallet can use it after March 15 as long as there are funds in it; however, they are not allowed to add money to it. According to RBI, Paytm Payments may be used to pay toll on Fastag as long as there is money in the bank’s Fastag. But after March 15, no more money will be allowed to be deposited in the Fastag issued by Paytm Payments Bank.