New Delhi: The RBI gave Paytm Payments Bank Ltd (PPBL) an additional 15 days until March 15, 2024, to stop deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags, taking into account the interests of customers, including merchants.
According to a central bank order dated January 31, PPBL was directed to halt further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards after February 29.
The RBI stated that this is being done in the best interests of PPBL customers (including merchants), who may require a little more time to make alternative arrangements, as well as the larger public interest.
“Further, it is directed that the bank shall facilitate a seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to such customers,” the Reserve Bank of India said in a press release.
The central bank has taken action against PPBL for persistent noncompliance and ongoing material supervisory concerns in the bank, necessitating additional supervisory action.
On Friday, the RBI also released a list of frequently asked questions (FAQs) for PPBL customers and the general public.
In a recent development that brings significant relief to millions of users, the Reserve Bank of India (RBI) has granted a 15-day extension for Paytm users to fulfill their financial obligations. This move comes as a respite amidst the ongoing economic uncertainties and challenges faced by individuals and businesses alike. The decision by RBI reflects a proactive approach towards addressing the concerns of Paytm users, acknowledging the need for flexibility during these unprecedented times.
The extension provides users with additional time to manage their finances and ensures that they can meet their payment deadlines without facing undue pressure or penalties. This announcement is particularly welcomed by those who rely on Paytm for various transactions, including bill payments, mobile recharges, and online purchases.
Furthermore, the RBI’s decision underscores the importance of fostering a supportive environment for digital payment platforms, which have become integral to the country’s financial ecosystem. By granting this relaxation, the RBI not only demonstrates its commitment to consumer welfare but also recognizes the evolving nature of digital transactions in India.
For Paytm, this extension offers an opportunity to enhance user satisfaction and reinforce its position as a trusted and customer-centric platform. It demonstrates the company’s responsiveness to regulatory changes and its dedication to ensuring a seamless user experience.
Overall, the RBI’s decision to provide a 15-day relaxation period for Paytm users represents a significant step towards alleviating financial stress and promoting financial inclusivity. It underscores the importance of collaborative efforts between regulatory authorities and fintech companies to create a more resilient and adaptable financial landscape for all stakeholders.