RBI extends Paytm Payments Bank’s deadline for ceasing transactions
Paytm's Stock Surges as RBI Extends Deadline
The Reserve Bank of India (RBI) has granted Paytm Payments Bank Ltd (PPBL) a 15-day extension until March 15, 2024, to cease all deposits, credit transactions, and top-ups in customer accounts, wallets, and FASTags. This extension, following a January 31 order, aims to consider the interests of customers, including merchants, allowing them additional time to arrange alternative solutions.
In line with customer convenience, the RBI has directed PPBL to facilitate a smooth withdrawal of customer deposits held with partner banks through the ‘sweep-in sweep-out’ facility.
The central bank’s actions stem from PPBL’s persistent non-compliances and ongoing supervisory concerns, prompting further regulatory measures.
To assist customers and the public, the RBI has released a set of Frequently Asked Questions (FAQs) on the matter.
