Discover the latest updates on RBI’s deadline extension for Paytm Payments Bank and the vital FAQs you need to know! Get ahead of the curve and ensure a seamless transition with exclusive insights and guidance. Read now!
RBI Provides FAQs for Paytm Payments Bank Users
The Reserve Bank of India has granted an extension until March 15 for the suspension of Paytm Payments Bank operations due to identified irregularities in its customer know your customer (KYC) data. In a bid to ensure a seamless transition for account holders, the Reserve Bank of India has released a set of frequently asked questions (FAQs) addressing various concerns.
The updated FAQs issued by the Reserve Bank of India aim to address common queries from PPBL users, particularly regarding the status of accounts used for salary deposits and bill payments. Users are provided with guidance on how to proceed with their accounts, especially if they rely on them for receiving salaries and managing recurring payments.
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While the Apex Bank of India had previously urged Paytm bank customers to consider shifting their banking activities and assets to alternative institutions amidst regulatory actions against the company, it’s important to note that essential banking services remain operational. Customers can continue to withdraw funds from their PPBL accounts and utilize the associated debit cards.
FAQs provided by the RBI
Will Paytm Payments Bank customers still have access to their funds and be able to use their debit cards after March 15, 2024?
Yes, all your funds can be used, transferred, or withdrawn from your savings/current account with PPBL up to the availability of the balance in your account post which no new deposits are allowed.
Similarly, the debit card can also be used up to the available balance in your account.
Will it be possible to deposit or transfer funds into a savings or current account with Paytm Payments Bank after March 15, 2024?
No. After March 15, 2024, you will not be able to deposit money into your account with PPBL. No credits or deposits other than interest, cashbacks, sweep-ins from partner banks, or refunds are allowed to be credited.
What is the fate of deposits held in partner banks through ‘sweep in/out’ arrangements after March 15, 2024?
Existing deposits held by PPBL customers in partner banks can still be transferred back to their accounts with PPBL, following the prescribed limit of ₹2 lakh per individual customer at the end of each day. This process, known as “sweep-in,” will enable customers to access their balances for use or withdrawal as usual. However, it’s important to note that no new deposits can be made with partner banks through Paytm Payments Bank after March 15, 2024.
Will Paytm Payments Bank customers still be able to receive their salaries into their accounts after March 15, 2024?
No. After March 15, 2024, you will not be able to receive any credits into your account with PPBL. It is suggested that you make alternative arrangements with another bank before March 15, 2024, to avoid inconvenience.
Will individuals continue to receive subsidies or direct benefit transfers linked to their Aadhar from the Government into their Paytm Payments Bank accounts after March 15, 2024?
No. After March 15, 2024, individuals will not be able to receive any such credit into their account with PPBL.
Can customers still have their monthly electricity bills, mobile bills, OTT Subscriptions, and Loan EMI paid automatically from their bank accounts with Paytm Bank Limited after March 15, 2024?
Withdrawal or debit mandates, including National Automated Clearing House (NACH) mandates, will still be processed as long as there is a sufficient balance in your account. However, after March 15, 2024, no additional credits or deposits will be permitted. To prevent any inconvenience, it’s advisable to arrange alternative banking arrangements with another bank before the specified date.
The EMI for my loan is automatically paid through my account with a bank other than Paytm Payments Bank. Can this continue?
Yes, EMIs registered with any bank other than Paytm Payments Bank can continue.
As the deadline approaches, PPBL customers are advised to review the provided FAQs and take appropriate actions to safeguard their financial interests. The Reserve Bank of India’s initiative to address common concerns through Frequently Asked Questions demonstrates its commitment to ensuring a smooth transition and maintaining confidence in the banking system.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and the Reserve Bank of India have contributed to the above report
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