Produced by: Tarun Mishra
As the Reserve Bank of India's deadline for imposing restrictions on Paytm Payments Bank draws near, customers are preparing for significant changes in services.
Following March 15, Paytm Payments Bank customers will no longer be able to deposit or transfer money into their savings or current accounts. Exceptions include interest, cashbacks, sweep-ins from partner banks, or refunds.
Customers will cease to receive salary credits, direct benefit transfers, or subsidies in their Paytm Payments Bank accounts after the stipulated deadline.
Services like top-up or transfer of money, FASTag and NCMC card recharges, and fund transfers via UPI or IMPS will be discontinued post-March 15.
Despite the impending changes, certain services will remain accessible. Customers can still withdraw funds, receive refunds and cashbacks, and make payments for electricity bills, OTT subscriptions, and loan EMIs using available balances.
Money in the Paytm Payments Bank wallet can still be used, withdrawn, or transferred to another wallet or bank account, provided there is a balance. However, minimum KYC wallets are limited to merchant payments.
Withdrawal of funds from Paytm Payments Bank accounts through UPI or IMPS will remain available until the balance is fully withdrawn. However, further deposits will be restricted.
With the looming changes, the RBI advises customers to explore alternative banking options to mitigate the impact of the upcoming restrictions.
While Paytm continues to explore alternative arrangements, official announcements regarding the future operations of Paytm Payments Bank are still pending.