RBI extends Paytm Payments Bank's restriction deadline to March 15, 2024.

[{"selector":"#anim-13ed9a57f7778681fc13a4a6f0cca87f","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8d2dcacfb71276bb57a68213996ed17c","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Previous deadline - February 29, 2024

[{"selector":"#anim-6913c49e0899b56f43786aee220f6d55","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-083a280bae02553b13192e233928c147","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] RBI stated that customer accounts, prepaid instruments, wallets, etc., will not accept deposits, credit transactions, top-ups after this date.

Paytm has been notorious for flouting regulatory guidelines repeatedly

[{"selector":"#anim-3fa94acb6c73a97b344bf0fb92dbe3d5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e8d24340d46661415bd6213f5a840ff1","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] This time, RBI’s ban on Paytm Payments Bank is due to non-compliance and material supervisory concerns.

Why the extension?

[{"selector":"#anim-1bb1505fbd44e6b9b74682384e3069a3","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8d34091fb0cf7cebbc9fed0f7c4e6062","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The 15-day extension has been given keeping in view the interest of bank's customers (and merchants) who may require more time to make alternative arrangements.

RBI also addressed some frequently asked questions (FAQs) for better clarity

[{"selector":"#anim-245c6b95e9ce9c384b2fedae1ac75046","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dab1a18453be47c7953270cc529d6802","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

First

[{"selector":"#anim-0fc129f2c32a3cc789cbf73eae794133","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b2271b783902d82b502d5d1072973877","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] After March 15, one cannot deposit money into Paytm bank account. No credits or deposits except interest, cashback, sweep-ins from partner banks, or refunds can be credited.

Second

[{"selector":"#anim-c51e740ee3feb52a621780c0f611701a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-68ace23066f245cd211b81b147a870c6","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Auto debit mandates (like EMIs) will continue to be executed until a balance is available in the account.

Third

[{"selector":"#anim-c5d9a9c117e33295c06f84852459e6b4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-99bc817069efdd027140f4ced20392b4","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Customers can continue to use, withdraw, or transfer to another wallet or bank account up to the balance available in their Paytm wallet.

Thanks for Reading!

[{"selector":"#anim-312d2ccb5a7f6bb356ded42651df76c4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-36c74d3a60fe669ea722576bde70c1c9","keyframes":{"transform":["translate3d(-104.48548%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]