Paytm Payments Bank deadline: Here is all you need to know about the service that will be affected

As the Reserve Bank of India (RBI) deadline for Paytm Payments Bank Ltd (PPBL) approaches on March 15, 2024, several services offered by the bank will cease to function. The RBI imposed restrictions on PPBL on January 31, 2024, due to persistent non-compliance and supervisory concerns, with the deadline initially set for February 29, 2024, later extended to March 15, 2024.

Here’s a rundown of the affected services and the implications for Paytm users:

1. Deposit and Top-up Restrictions: PPBL was barred from accepting fresh deposits or top-ups after February 29, 2024. This restriction will remain in place beyond the deadline, affecting users’ ability to add funds to their accounts.

2. FAQs Issued by RBI: To provide clarity on the restrictions, the RBI released a set of Frequently Asked Questions (FAQs) on February 16, 2024. These FAQs outline the implications of the regulatory actions on PPBL’s services.

3. Impact on Paytm Services: Various Paytm services will be impacted by the restrictions imposed on PPBL, including digital wallet transactions, money transfers, and bill payments. Users may experience disruptions or limitations in accessing these services.

4. Customer Communication: PPBL is expected to communicate with its customers regarding the changes and provide guidance on alternative banking options. Users should stay informed through official communications from PPBL and the RBI.

5. Compliance Measures: PPBL will need to address the regulatory concerns raised by the RBI to lift the imposed restrictions and resume normal banking operations. The bank may implement compliance measures to meet regulatory requirements.

Services that will not be affected

Withdrawals from Paytm Payments Bank – Customers can continue to withdraw or transfer funds from their accounts up to the available balance. Debit card transactions are also permissible within this limit.

Refunds – Refunds, cashbacks, sweep-ins from partner banks, or interest can still be credited to customers’ accounts even after March 15, 2024.

Monthly bill auto-deduction – Automatic deductions for monthly expenses such as electricity bills or OTT subscriptions will continue until there are sufficient funds in the account.

Auto debit for EMIs – Auto-debit mandates for loan EMIs will be honoured as long as there are funds available in the account. Customers are advised to set up alternative arrangements for EMI payments through another bank before the stipulated deadline.

Wallet usage – Customers can utilize the balance in their Paytm Payments Bank wallets for various transactions, including transfers to other accounts or wallets.

Wallet closure and balance transfer – Customers with full KYC wallets can approach PPBL or use its banking app to close their wallets and transfer the balance to another bank account.

FASTag usage – Existing FASTags issued by Paytm Payments Bank can still be used to pay tolls until the available balance is depleted. However, customers are advised to obtain a new FASTag from another bank before March 15, 2024.

Withdrawals via UPI/IMPS – Customers can withdraw funds from their Paytm Payments Bank accounts using UPI/IMPS until the available balance is exhausted.

Continued app functionality – Users can rest assured that all services offered through the Paytm app will continue without interruption beyond March 15, 2024.

QR code, Soundbox, etc – Paytm’s QR code, Soundbox, and card machines will remain fully functional, ensuring seamless transactions for both users and merchants.

Services such as movie tickets, etc – All existing services on the Paytm app, including ticket bookings for movies, events, and various modes of travel (metro, flight, train, bus), will continue as usual.

Utility bill payments – Users can conveniently recharge their mobile phones, DTH, or OTT subscriptions, as well as settle utility bills such as electricity, water, gas, and internet through the Paytm app. The app facilitates payment for a wide range of services, including booking cylinders, paying piped gas bills, apartment electricity bills, and insurance premiums.

Insurance services – Users can purchase insurance policies for vehicles, health, and more, as well as pay insurance premiums through the Paytm app.

FASTag services: While purchasing Paytm Payments Bank FASTags will not be possible after March 15, users can recharge their existing FASTags until that date. The app also offers HDFC Bank FASTags and recharge options for other partnered banks.

Investments and gold – Investments in Equity, Mutual Funds, NPS through Paytm Money, as well as transactions involving digital gold, are secure and fully functional.

As the deadline approaches, Paytm users should be aware of the impending changes and prepare accordingly. It is advisable to monitor official communications from PPBL and the RBI for updates on the situation and any further developments.