Paytm Payments Bank cease these operations, Here to know about

by Psu Connect
Date: 16-03-24

Paytm Payments Bank will stop offering services like accepting deposits and processing credit transactions starting March 15, as directed by the Reserve Bank of India.

Paytm Payments Bank cease these operations, Here to know about

The Reserve Bank of India (RBI) directed Paytm Payments Bank to halt accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments starting from March 1 due to concerns about non-compliance with regulations and supervisory issues.

The central bank has ordered the shutdown of Paytm Payments Bank due to concerns over non-compliance issues. Reports indicate that numerous accounts were opened without proper identification, raising worries about potential involvement in illicit activities such as money laundering.

Some of the concerning factors of the halting of operations are,

-Customers will not be able to deposit money into their Paytm Payments Bank accounts, but will still be able to withdraw or transfer funds after March 15.

-Salary Credit, Direct Benefit Transfers, or Subsidies will not be available in Paytm Payments Bank accounts, but refunds, cashbacks, and sweep-ins from partner banks will still be allowed.

-Customers will not be able to access the top-up facility and transfer money in their wallets after March 15. However, they can make payments if there is a balance available in their accounts.

-Recharge or top-up of funds in NCMC cards issued by Paytm bank will no longer be possible.

-Customers will not be able to transfer money into Paytm Payments Bank accounts through UPI or IMPS after March 15.

Some of the services will be continued after 15th March, likewise, Merchants or Businesses will accept payments using QR codes, provide receipts, and transfer funds.

Users can continue to withdraw or transfer funds, including Debit card users. The refunds or cashback would also be continued along with monthly bill auto-deduction services.