RBI Restrictions on Paytm Payments Bank Services Effective From March 15: List of services that will work and not after March 15

The Reserve Bank of India (RBI) has imposed stringent restrictions on Paytm Payments Bank, setting a deadline of March 15, 2024. The central bank’s directives mandate several changes in the services provided by Paytm Payments Bank, affecting its users nationwide. As the deadline approaches, users must be aware of the services that will continue, those that will cease, and the necessary actions they need to take to avoid inconvenience.

 Paytm Services that will continue to work after March 15, 2024:

  1. Withdrawals and Transfers: Users can still withdraw funds from their Paytm Payments Bank accounts and make transfers up to the available balance.
  2. Refunds and Cashbacks: Refunds, cashbacks, and interest from partner banks will continue to be credited into users’ accounts even after March 15.
  3. Monthly Bill Payments: Automated deductions for monthly bills, such as electricity and OTT subscriptions, will be processed as long as there is a sufficient balance in the account.
  4. EMI Payments: Automatic debit mandates for EMI payments will proceed if there is a balance available, though users are advised to set up alternative arrangements with another bank to avoid disruption.
  5. FASTag Usage: Existing FASTags issued by Paytm Payments Bank can still be used for toll payments until the balance is depleted.

Paytm Services that will not work after March 15, 2024:

  1. Deposits and Transfers In: Paytm Payments Bank will cease to accept deposits or transfers into user accounts after March 15, 2024.
  2. Salary Credits and Direct Benefit Transfers: Users will not be able to receive salary credits or direct benefit transfers into their Paytm Payments Bank account after the specified deadline.
  3. Top-ups and Recharges: Wallet top-ups, FASTag recharges, and transfers into the Paytm Payments Bank account will be discontinued.
  4. Receiving Credits: Users will no longer receive credits apart from cashbacks, refunds, or interest after the given date.
  5. Credit Balance Transfer for FASTag: Paytm Payments Bank does not support credit balance transfer for FASTags, necessitating users to close their old FASTags and request a refund.
  6. Transfer In via UPI/IMPS: Transferring money into Paytm Payments Bank accounts via UPI or IMPS will not be possible after March 15.

Actions to Take:

  1. Alternative Banking Arrangements: Users are strongly advised to make alternative banking arrangements before the deadline to avoid any inconvenience.
  2. Wallet Closure: Full KYC wallet holders can close their wallets and transfer the balance to another bank account, while minimum KYC wallet holders can use the balance or request a refund.
  3. Procuring New FASTags: Users with Paytm Payments Bank-issued FASTags should procure new ones from other banks to ensure continued service.

The RBI’s directives will significantly impact Paytm Payments Bank users, necessitating prompt action to avoid disruptions in financial transactions. Users must understand the changes in services, plan accordingly, and transition smoothly to alternative banking solutions before the March 15 deadline to minimize inconvenience.

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