Paytm Payments Bank is about to shut down as the deadline for the ban is almost here. As directed by the Reserve Bank of India (RBI), Paytm Payments Bank is set to cease services, including deposit acceptance and credit transaction processing, starting March 15. Here's a breakdown of the key changes and implications for Paytm users.
New Delhi,UPDATED: Mar 14, 2024 17:53 IST
Paytm Payments Bank is about to shut down as the deadline for the ban is almost here. As directed by the Reserve Bank of India (RBI), Paytm Payments Bank is set to cease services, including deposit acceptance and credit transaction processing, starting March 15. The RBI's action comes in response to serious rule violations observed within the bank, leading to concerns over non-compliance issues. Here's a breakdown of the key changes and implications for Paytm users.
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What happens to Paytm services after March 15? All questions answered
Will Paytm stop working after March 15?
Well, no. Paytm will continue to work after March 15 and all of its services will function, except for the Paytm Payments Bank. What this means is that people who have an account with Paytm Payments Bank will be impacted, and those who are using Paytm with other authorised banks (like ICICI, HDFC, and others) can continue to use the UPI app without any issue.
What is the issue with Paytm Payments Bank?
The RBI's decision to order the closure of Paytm Payments Bank stems from identified non-compliance issues and concerns within the institution. Several reports indicate that thousands of accounts were opened without proper identification protocols, raising red flags regarding potential involvement in illicit activities such as money laundering. This information has been shared with relevant authorities, including the Enforcement Directorate (ED) and the Prime Minister's Office, for further investigation.
What services will work on Paytm after March 15?
As mentioned above, the ban on Paytm Payments bank will NOT affect those who have linked their Paytm to any authorised banks. People will be able to recharge or continue to do anything that they have been doing using Paytm. The RBI ban will only impact users who opened an account with Paytm Payments Bank.
What Paytm Payments Bank services will STOP working after March 15?
As per the details shared on the official Paytm website, you can continue to withdraw or transfer Paytm Payments Bank money to another wallet or bank account until the balance is available in the wallet. However, you will not be able to make any deposits in the same after March 15, 2024. However, all refunds and cashback can still be credited to your wallet. Users are still advised to transfer their money to an authorised bank where you already an account.
Do keep in mind that salary credits, direct benefit transfers, and subsidies will not be available in Paytm Payments Bank accounts after the mentioned deadline. Nonetheless, refunds, cashbacks, and sweep-ins from partner banks will remain accessible. Facilities such as top-ups and fund transfers within wallets will be discontinued. Users can only make payments using available balances in their accounts.
Additionally, recharge of FASTags issued by Paytm Payments Bank will cease post-March 15. You can either use the remaining amount or close your FASTag / NCMC Card issued by Paytm Payments Bank and request the bank for a refund. Also, recharge or top-up of funds in NCMC cards issued by Paytm bank will no longer be possible, affecting users' convenience in transit payments. Lastly, customers will be unable to transfer funds into Paytm Payments Bank accounts via UPI or IMPS channels following the March 15 deadline.
Published By:
Ankita Garg
Published On:
Mar 14, 2024
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