RBI asks Patym customers to shift to other banks

Mumbai: The RBI on Friday advised customers as well merchants of Paytm Payments Bank Ltd (PPBL) to shift their accounts to other banks by March 15, giving 15 more days to the beleaguered entity to close most of its operations, including deposit and credit transactions. The earlier deadline was February 29, 2024, which the RBI has extended by 15 days keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and in the larger public interest.

The RBI also said withdrawal or utilisation of balances by PPBL customers from their accounts, including saving bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards will be permitted without any restrictions, up to their available balance even beyond March 15. The central bank has also issued a list of 30 Frequently Asked Questions (FAQs), for the convenience of customers of PPBL, and the general public at large. “After March 15, 2024, you (PPBL customers) will not be able to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited,” the FAQs said. It further said: “It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience”.

The existing deposits of PPBL customers maintained with partner banks can be brought back (sweep-in) to the accounts with PPBL, subject to the ceiling on balance (Rs 2 lakh per individual customer at the end of day).