The RBI has given details about how customers can transfer their balance from Paytm wallet.
The Reserve Bank of India (RBI) on Friday issued a list of frequently asked questions (FAQs) on Paytm Payments Bank to help customers transition smoothly from the platform, which has been banned from on boarding new customers. The RBI released the FAQs after extending the deadline for winding down operations of Paytm Payments Bank by 15 days. The earlier deadline was February 29. The action against the bank was triggered by persistent and serious supervisory concerns, the RBI had said earlier.
In its FAQs, the central bank said that customers will be able to use, withdraw or transfer funds from both current and savings accounts "upto the available balance" even after March 15. The use of Paytm Payments Bank debit card will also be allowed but only for these purposes.
However, the central bank has clarified that customers of Paytm Payments Bank won't be able to deposit money into their accounts (including salary account and direct benefit transfers) other than interest, cashbacks, sweep-in from partner banks or refunds.
"The existing deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. Rs 2 lakh per individual customer at the end of day). Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024," the RBI further said.
Withdrawal or debit mandates (for electricity bills, OTT subscription, EMIs etc) will continue to get executed till there is balance in the account. But all these facilities will be stopped after March 15, 2024, the RBI reiterated in the FAQs.
Similar curbs will be applicable on Paytm Payments Bank wallet too. Customers have been advised to approach Paytm Payments Bank or use its banking app to close the wallet and transfer balance to an account maintained with another bank in the case of full KYC wallets. In the case of minimum KYC Wallets, users can use the available balance or request for a refund.
FASTags issued by Paytm Payments Bank can be used only upto the available balance. Adding money or top-ups won't be allowed after March 15. The same rules will be applicable on the National Common Mobility Card (NCMC) issued by Paytm Payments Bank.