In a recent development, the Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank Ltd (PPBL) to cease all deposits, credit transactions, and top-ups in customer accounts, wallets, and FASTags. The new deadline is set for March 15, 2024, providing a 15-day extension from the initial order on January 31. This extension aims to accommodate the interests of customers, including merchants, allowing them additional time to arrange alternative solutions.
Customer-Centric Measures
In consideration of customer convenience, the RBI has directed PPBL to ensure a seamless withdrawal of customer deposits held with partner banks through the ‘sweep-in sweep-out’ facility. This measure is intended to facilitate a smooth transition for customers as they seek alternative banking solutions.
Regulatory Measures Stemming from Non-Compliances
The central bank’s decision to extend the deadline is a result of Paytm Payments Bank’s persistent non-compliances and ongoing supervisory concerns. The RBI, in its regulatory capacity, is taking necessary actions to address these issues and ensure compliance with established norms and regulations.
FAQs Released to Aid Understanding
In an effort to assist customers and the general public in understanding the implications of these regulatory measures, the RBI has released a set of Frequently Asked Questions (FAQs) on the matter. These FAQs aim to provide clarity on the changes, the reasons behind the regulatory actions, and the steps customers can take during this transition period.
