Paytm Payments Bank has reassured its customers that their existing balances are safe, following the Reserve Bank of India's (RBI) directive restricting the bank from accepting new deposits or allowing credit transactions after February 29, 2024.
In an email and text message to customers, the bank stated that while new deposits or credit transactions will not be permitted after the specified date, there is no restriction on withdrawing money from existing balances.
"Your money is safe with the bank," the Paytm Payments Bank said.
The central bank's action follows a comprehensive system audit report and compliance validation by external auditors. Starting February 29, 2024, Paytm Payments Bank Limited (PPBL) is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more.
Customers are allowed to withdraw or use balances without restrictions, but other banking services like fund transfers and UPI facilities will be discontinued. The nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd. must be terminated by February 29, 2024.
Settlement of all pipeline transactions and nodal accounts initiated on or before February 29, 2024, should be completed by March 15, 2024. The RBI had previously directed PPBL to stop onboarding new customers in March 2022.
"Withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. is permitted without any restrictions up to their available balance. No other banking services like fund transfers (irrespective of the name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facilities should be provided by the bank after February 29, 2024. The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024," the RBI said.
(With agency inputs)
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