The Reserve Bank of India (RBI) on Friday gave a 15-day extension to Paytm Payments Bank for stopping deposit transactions.

Customers will now have time till 15 March to deposit money into their accounts, wallets, FASTags and prepaid cards. The last date set by the RBI earlier was 29 February.

The central bank relaxed the deadline keeping in mind the public’s interest as consumers and merchants of the payments bank may need more time to make alternative arrangements.

On 31 January, the RBI had directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after 29 February citing large scale non-compliance of regulations and supervisory concerns.

“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc. after 15 March (extended from the earlier stipulated timeline of 29 February), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime," RBI said on Friday.

Separately, the RBI also said on Friday that merchants or businesses can accept payments using a Paytm QR code, Paytm soundbox or Paytm PoS (point-of-sale) terminal even after 15 March, if their receipt and transfer of funds are linked to any bank account other than Paytm Payments Bank.

However, the RBI has not extended the deadline to close nodal accounts of One97 Communications and Paytm Payments Services maintained by Paytm Payments Bank.

Meanwhile, One97 Communications, owner of Paytm, has shifted its nodal account to Axis Bank from Paytm Payments Bank. An escrow account has been opened for this purpose to ensure “seamless merchant settlements as before”.