The Reserve Bank of India (RBI) has recently responded to public concerns regarding the ban on Paytm Payments Bank by releasing a list of frequently asked questions (FAQs). These FAQs cover various aspects of the ban and explain how the commercial restrictions will be implemented.
Table of Contents
Here are the corrected statements:
1. Account with Paytm Payments Bank
Can I continue to withdraw money from my Paytm Payments Bank account even after March 15, 2024? Will I be able to continue using my debit card issued by Paytm Payments Bank?
Yes, you can continue to withdraw or transfer funds from your account as long as there is a balance. Similarly, you can use your debit card for withdrawals or transfers as long as there is a balance in your account.
Can I deposit or transfer money to my Paytm Payments Bank account after March 15, 2024?
No, you will not be able to deposit money into your Paytm Payments Bank account after March 15, 2024. Only credits or deposits such as interest, cashback, sweep-ins, or refunds from partner banks will be allowed.
Can refunds be credited to my Paytm Payments Bank account after March 15, 2024?
Yes, refunds, cashback, sweep-ins from partner banks, or interest credited to your account will still be allowed after March 15, 2024.
Can I continue to receive my salary in my Paytm Payments Bank account after March 15, 2024?
No, you will not be able to receive salary credits in your Paytm Payments Bank account after March 15, 2024. It is advised to make alternative arrangements with another bank before March 15, 2024, to avoid inconvenience.
Can I continue to receive subsidies or direct benefit transfers in my Paytm Payments Bank account after March 15, 2024?
No, you will not be able to receive subsidies or direct benefit transfers in your Paytm Payments Bank account after March 15, 2024. It is recommended to change your linked account to another bank before March 15, 2024, to avoid any inconvenience or disruption.
Can my monthly electricity bill be paid automatically from my Paytm Payments Bank account?
Withdrawal/debit mandates like NACH will continue as long as there is a balance in your account. However, credits or deposits to your account will not be allowed after March 15, 2024. Therefore, it is suggested that alternative arrangements be made through another bank before March 15, 2024, to avoid inconvenience.
Can my monthly OTT subscription be automatically paid through UPI from my Paytm Payments Bank account?
Withdrawals/debit mandates through automated UPI mandates will continue as long as there is a balance in your account. However, after March 15, 2024, credits or deposits will not be allowed in your accounts. Therefore, it is suggested that alternative arrangements be made through another bank before March 15, 2024, to avoid inconvenience or disruption.
Can my loan installment (EMI) be paid automatically through my Paytm Payments Bank account?
Auto debit mandates will continue as long as there is a balance in your account. However, credits or deposits to your accounts will not be allowed after March 15, 2024. Therefore, it is suggested that alternative arrangements be made to set up EMI payments through another bank before March 15, 2024.
Can my loan installment (EMI) be paid automatically through any bank other than Paytm Payments Bank?
Yes, EMIs registered with any bank other than Paytm Payments Bank can continue.
What will happen to deposits held with partner banks through the ‘sweep in/out’ arrangement after March 15, 2024?
Existing deposits held by Paytm Payments Bank customers with partner banks can be swept back into Paytm Payments Bank accounts (sweep-in), subject to the balance limits prescribed for the Payments Bank (i.e., ₹2 lakh per individual customer at the end of the day). Such sweep-ins will continue to be permitted for the purpose of making the balance available for use or withdrawal on behalf of the customer. However, no new deposits with partner banks will be allowed through Paytm Payments Bank after March 15, 2024.
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2. Paytm Payments Bank Wallet
I have a wallet in Paytm Payments Bank. Can I use money from this wallet even after March 15, 2024?
Yes, you can continue to use, withdraw, or transfer funds to another wallet or bank account up to the available balance in the Wallet. However, the minimum KYC wallet can only be used for merchant payments.
I have a wallet in Paytm Payments Bank. Can I add or transfer money to this wallet after March 15, 2024? Can I receive money in this wallet from another person after March 15, 2024?
No, after March 15, 2024, you will not be able to add or transfer money to the wallet, nor will you be able to receive any credit other than cashback or refunds.
Cashback is outstanding in my Paytm Payments Bank wallet. Can I get this cashback after March 15, 2024?
Yes, refunds and cashback may still be credited.
I have a wallet in Paytm Payments Bank. Can I close this wallet and transfer the balance to my bank account in another bank?
Yes, you can contact Paytm Payments Bank or use its banking app to close your wallet and transfer the balance to an account maintained at another bank. In the case of a minimum KYC wallet, you can use the available balance or request a refund.
3. Transfer through UPI/ IMPS
Can I transfer my money to a Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?
No, you will not be able to transfer your money to a Paytm Payments Bank account after March 15, 2024.
Can I withdraw money from my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?
Yes, you can withdraw money from your Paytm Payments Bank account through UPI/IMPS up to the balance available in your account.
4. FASTag
I have a FASTag issued by Paytm Payments Bank. Can I use it to pay the toll even after March 15, 2024?
Yes, you can continue to use your FASTag to pay tolls until the available balance is exhausted. However, no further funding or top-up will be allowed in the FASTag issued by Paytm Payments Bank after March 15, 2024. To avoid any inconvenience, it is suggested that you get a new FASTag issued by another bank before March 15, 2024.
I have a FASTag issued by Paytm Payments Bank. Can I recharge the balance after March 15, 2024?
No, after March 15, 2024, you will not be able to top-up or recharge your FASTag issued by Paytm Payments Bank. To avoid any inconvenience, it is suggested that you get a new FASTag issued by another bank before March 15, 2024.
Can I transfer the balance from my old FASTag issued by Paytm Payments Bank to a new FASTag received from another bank?
No, the credit balance transfer feature is not available in the FASTag product. Therefore, you have to close your old FASTag issued by Paytm Payments Bank and request a refund from the bank.
5. Merchant Payment
I am a merchant, and I accept payments using a Paytm QR Code, Paytm Soundbox, or Paytm POS terminal linked to another bank account (not from Paytm Payments Bank). Can I continue using this setup after March 15, 2024?
Yes. If your receipt and transfer of funds are linked to a bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.
I am a merchant, and I accept payments using the Paytm QR Code, Paytm Soundbox, and Paytm POS Terminal linked to my bank account or wallet with Paytm Payments Bank. Can I continue using this setup after March 15, 2024?
No, after March 15, 2024, you will not be able to receive any credit from Paytm Payments Bank in your bank account or wallet other than a refund, cashback, sweep-in from partner banks, or interest. To avoid any inconvenience or disruption, it is suggested that you get a new QR code linked to the account of another bank or wallet to receive the payment. You can also change your bank account details (in which you receive payments) through your service provider.
6. Bharat Bill Payment System (BBPS)
Can I make a payment through the Bharat Bill Payment System (BBPS) using my Paytm Payments Bank account?
Yes. You can continue to make payments from your Paytm Payments Bank account through the Bharat Bill Payment System up to the balance available in your account. Since you will not be able to deposit any more funds into your accounts or wallet with Paytm Payments Bank after March 15, 2024, it is advised that you make alternative arrangements for BBPS from another bank account before March 15, 2024. can do.
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7. Aadhaar Enabled Payment System (AEPS)
Can I make withdrawals from my Paytm Payments Bank account with biometric authentication under the Aadhaar-enabled payment system?
Yes. You can continue to withdraw using AEPS authentication up to the available balance in your account.
8. Paytm Payments Bank Business Correspondent
I have an account in Paytm Payments Bank. Can Paytm Payments Bank Business Correspondent (also known as Paytm Payments Bank Agent) help me withdraw funds from my account after March 15, 2024?
Yes. Paytm Payments Bank Business Correspondent (Bank Agent) can help you withdraw money from your bank account up to the available balance in your account.
9. Free Accounts
What will happen to my Paytm Payments Bank account/wallet if it is marked with a lien or freeze on the instructions of law enforcement or judicial authorities?
Any lien or freeze (full or partial) marked on the Customer’s account/wallet with Paytm Payments Bank in accordance with the directions of any law enforcement or judicial authorities shall continue to be governed by the orders passed by such authorities.
What will happen to my Paytm Payments Bank account/wallet if it is marked with lien or freeze due to Paytm Payments Bank’s internal policies?
The Bank is instructed to allow withdrawal or transfer to any other bank account up to the balance available in the customer’s account/wallet.
10. New customers
What is the status of the commercial restrictions imposed on Paytm Payments Bank vide RBI press release dated March 11, 2022?
The business restriction of March 11, 2022, barring Paytm Payments Bank from onboarding any new customers for any of its services, will remain in force. Therefore, Paytm Payments Bank cannot add any new customers after March 11, 2022.
Also Read: Paytm Awaits Approval from the Government to Invest in its Payment Services