With the deadline mandated by the Reserve Bank of India for Paytm Payments Bank ending today, the digital payments firm Paytm has assured users and merchants that its mobile app will continue to work past March 15. It said that the company is committed to providing its users and merchants “a seamless payment experience”. Amid the confusion and frenzy among users over what will work and what will not, Paytm has released an updated document addressing 14 FAQs.
Meanwhile, earlier on Thursday, One97 Communications Limited (OCL), the parent company of Paytm, announced that National Payments Corporation of India (NPCI) has granted approval to the company to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model. “Four banks (Axis Bank, HDFC Bank, State Bank of India, YES Bank) shall act as PSP (Payment System Provider) banks to OCL. YES Bank shall also be acting as merchant acquiring bank for existing and new UPI merchants for OCL. Paytm handle shall be redirected to YES Bank. This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner,” it said in a regulatory filing.
OCL has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks at the earliest.
Here’s the list of FAQs answered by Paytm and Paytm Payments Bank:
What does the RBI directive mean for my Paytm Payments Bank Account/Wallet/Fixed Deposit/Transit Card? Is my money safe?
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account/Wallet from accepting new deposits or allowing credit transactions after March 15, 2024. Please note that you will not be able to deposit or add money to your Paytm Payments Bank Account/Wallet after March 15, 2024. However, there is no restriction on withdrawal of money from your existing balance even after March 15, 2024. The directive does not impact your existing balances in Account or Wallet and your money is safe with your Bank.
I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024? Can I continue to use my debit card issued by Paytm Payments Bank?
You can continue to use, withdraw or transfer your funds from your account up to the available balance in your account. Similarly, you can continue to use your debit card to withdraw or transfer funds up to the available balance in your account. The directive does not impact your existing balances in Account and your money is safe with your Bank.
I have a savings bank or current account with Paytm Payments Bank. Can I deposit or transfer money into this account after March 15, 2024?
The Reserve Bank of India (RBI) has issued a directive prohibiting Paytm Payments Bank from accepting new deposits or facilitating credit transactions after March 15, 2024. However, interest, cashbacks, sweep-ins from partner banks, or refunds are permitted to be credited.
My salary is credited into my account with Paytm Payments Bank. Can I continue to receive my salary into this account?
You can continue to use, withdraw or transfer your funds from your account up to the available balance in your account. The directive does not impact your existing balances in Account and your money is safe with your Bank. We kindly recommend that you make alternative arrangements with another bank before March 15, 2024, to ensure a smooth transition and avoid any inconvenience.
I am expecting a refund in my account with Paytm Payments Bank after March 15, 2024. Can this refund be credited into my account?
Yes. Refunds will be allowed for transactions done from Wallet /Savings/Current accounts, cashbacks, sweep-in from partner banks or interest are permitted credits into your Paytm Payments Bank Account even after March 15, 2024.
The instalment (EMI) for my loan is automatically paid through my account with a bank other than Paytm Payments Bank. Can this continue?
The Reserve Bank of India (RBI) has issued a directive for Paytm Payments Bank. EMIs registered with any bank other than Paytm Payments Bank can continue.
I have a wallet with Paytm Payments Bank. Can I continue to use money from this wallet after March 15, 2024?
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Wallet from accepting new deposits or allowing credit transactions after March 15, 2024. However, you can continue to use, withdraw or transfer to a bank account up to the balance available in the wallet. Minimum KYC wallets can, however, be used only for merchant payments. The directive does not impact your existing balances in Wallet and your money is safe with your Bank.
I have a FASTag issued by Paytm Payments Bank. Can I continue to use it to pay toll after March 15, 2024?
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank from accepting new deposits or allowing credit transactions after March 15, 2024. However, you can continue to use your FASTag to pay at enabled toll and parking merchants’ up to the available balance in your wallet. Additionally, no further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience. The directive does not impact your existing balances and your money is safe with our Bank.
I have a FASTag issued by Paytm Payments Bank. Can I recharge the balance after March 15, 2024?
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank from accepting new deposits or allowing credit transactions after March 15, 2024. Hence, you will not be able to top-up or recharge your FASTag issued by Paytm Payments Bank. You can procure a new FASTag issued by another bank before March 15, 2024, to ensure a smooth transition and avoid any inconvenience.
Can I transfer the balance from my old FASTag issued by Paytm Payments Bank to a new FASTag obtained from another Bank?
Credit balance transfer feature is not available in the FASTag product. Therefore, you will have to close your old FASTag issued by Paytm Payments Bank and request for any applicable refund by contacting our customer care.
I am a merchant and I accept payments using a Paytm QR code, Paytm sound box or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this set-up even after March 15, 2024?
Yes. If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.
I am a merchant and I accept payments using a Paytm QR code, Paytm sound box, Paytm POS terminal linked to my bank account or wallet with Paytm Payments Bank. Can I continue to use this set-up even after March 15, 2024?
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account/Wallet from accepting new deposits or allowing credit transactions after March 15, 2024, other than refunds, cashbacks, sweep-in from partner banks or interest. Therefore, to avoid inconvenience or disruption, you may change your bank account details (in which you receive payments) before March 15, 2024 through Paytm for business mobile application or by contacting customer care.