RBI gives 15 days time to Paytm, time extended till March 15 for Wallet and Payments Bank

The Reserve Bank of India has given Paytm Payments Bank a 15-day grace period to stop deposits, credit transactions and top-ups in customer accounts, and extended the date to March 15 from the earlier scheduled deadline of February 29, 2024. RBI has also asked Paytm Payments Bank to facilitate seamless withdrawal of customers’ deposits with partner banks. RBI had barred Paytm Payments Bank from processing deposits, credit or top-up transactions in customer accounts due to persistent non-compliance. Additionally, the bank was earlier banned from processing UPI facilities and other banking services like fund transfers from February 29.

In another blow to Paytm Payments Bank, the Employees’ Provident Fund Organization (EPFO) has issued a directive directing its officials to exercise caution while settling claims related to the Paytm subsidiary. This development has further tarnished the reputation of Paytm Payments Bank, which has been facing several hurdles in recent times. EPFO’s move signals concern over the bank’s credibility and compliance standards, prompting the government body responsible for managing the Employees’ Provident Fund to take a cautious stance.

On January 31, the RBI had directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, Fastag and other devices after February 29. Indian Highway Management Company Limited (IHMCL), the toll collection arm of public sector National Highways Authority of India (NHAI), has advised highway users to avail ‘Fastag’ services from 32 authorized banks besides Paytm Payments Bank to avoid hassles. Giving information on social media platform ‘X’, IHMCL wrote, buy your ‘Fastag’ from 32 authorized banks.

Paytm issue | RBI gives 15-day relaxation to Paytm, extends the date to 15th March from the earlier stipulated timeline of February 29, 2024. RBI issues FAQ in the Paytm case. pic.twitter.com/D61arOWdAD

— ANI (@ANI) February 16, 2024