RBI extends deadline for Paytm Payments Bank by 15 days until March 15 to stop accepting deposits

The Reserve Bank of India (RBI) on Friday announced a 15-day extension to the deadline for Paytm Payments bank to stop accepting deposits and carrying out credit transactions. The deadline has now been extended to March 15th as against the earlier deadline of February 29th.

This extension follows the RBI's directive in January, which instructed the Paytm unit to halt the acceptance of new deposits into its accounts or wallets starting February 29.

The central bank attributed this action to ongoing and significant supervisory concerns. Additionally, earlier this week, the nation's law enforcement agency initiated an investigation into the platform's overseas transactions.

The RBI stated that it extended the deadline "in consideration of the interests of customers, including merchants, who may require additional time to arrange alternative solutions." According to the notification, after March 15, 2024, no further deposits, credit transactions, or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc.

Meanwhile, the RBI issued a comprehensive set of FAQs regarding the impact its directive on Paytm Payments Bank will have on customers.