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How RBI’s Paytm Payments Bank restrictions impact you
- This comes almost two years after the payments bank was restricted from onboarding new customers, a restriction that is still in force
The Reserve Bank of India (RBI) on Wednesday barred Paytm Payments Bank from accepting customer deposits from 1 March, after an audit revealed “persistent non-compliances” and “continued material supervisory concerns”. This comes almost two years after the payments bank was restricted from onboarding new customers, a restriction that is still in force. Mint spoke to sectoral experts to piece together what today’s RBI notification means for Paytm customers:
What happens to users of Paytm App?
They will not be impacted since it comes under the parent company (One 97 Communications) of the payments bank. That apart, UPI or unified payments interface transactions would also work on the app.
What to do if you use Paytm Fastag or its National Common Mobility Card?
RBI has allowed such customers to extinguish their balances but they cannot load these instruments with more money from 1 March.
What would happen if your Paytm app is linked to your bank account with the payments bank?
There are no restrictions on usage of the app to transfer money or withdraw it from the wallet or account. However, there are restrictions on inward or credit transactions from 1 March. This means that account holders can freely transfer money out of the wallet and bank accounts but cannot receive money from 1 March.
Are there any restrictions on withdrawal of money from Paytm Payments Bank accounts?
No, there are no restrictions on withdrawal and transfer of funds from Paytm Payments Bank accounts.
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First Published:31 Jan 2024, 10:32 PM IST
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