RBI's Deadline On Paytm Payments Bank Ends Today: From Wallet To FASTag, All You Need To Know

On Friday, March 15, Paytm Payments Bank (PPBL) will officially halt its operations as mandated by the Reserve Bank of India (RBI). This move comes after a series of directives from the banking regulator due to persistent non-compliance issues and material supervisory concerns within the bank.

Earlier, the RBI had set a deadline for PPBL to cease accepting fresh deposits and conducting credit transactions by February 29, which was later extended to March 15. The decision was based on the findings of a Comprehensive System Audit report and subsequent compliance validation report by external auditors, highlighting continued non-compliance issues.

As the deadline approaches, Paytm customers may be anxious about the impact on their banking services. Here's a breakdown of what services will be affected and what will remain operational after March 15:

Withdrawal And Transfer

Customers will still be able to withdraw and transfer money from their PPBL accounts. However, no further deposits will be allowed except for interest, cashback, sweep-ins, or refunds.

UPI Services

Paytm's UPI service will continue to function seamlessly even after the deadline. Customers and merchants with '@paytm' handles will be migrated to other banks to avoid disruptions.

FASTag

Existing FASTag users can still utilize their tags to pay toll fees, but no further funding or top-ups will be permitted after March 15. The National Highways Authority of India (NHAI) advises users to procure FASTags from other banks before the deadline to ensure uninterrupted travel.

Auto Debit EMIs

Auto debit mandates will remain operational as long as there is a balance in the PPBL account. However, customers are advised to set up alternative EMI payments through another bank before March 15.

Paytm Wallet

Top-up and transfer facilities for PPBL wallets will cease after March 15. However, existing funds in the wallet can still be used for transactions and payments.

National Common Mobility Card (NCMC)

NCMC cards issued by PPBL can still be used up to the available balance, but no further top-ups will be permitted after March 15.

QR Codes and Sound Boxes

Receipts and fund transfers linked to bank accounts other than PPBL can continue post-March 15. Users are advised to obtain fresh QR codes linked to accounts with other banks or wallets for receiving payments.

In response to these changes, shares of Paytm's parent company, One97 Communications Limited, saw a surge, with prices locked at a 5% upper circuit at Rs 370.70 per share on March 15.

As the deadline looms, Paytm customers are urged to take necessary actions to ensure a smooth transition of their banking services. With proper planning and timely adjustments, the impact of PPBL's cessation of operations can be mitigated.