The Reserve Bank of India on Friday released a list of frequently asked questions (FAQs) to allay fears of customers following the business restrictions imposed on Paytm Payments Bank.

The central bank has given Paytm Payments Bank a deadline extension of 15 days. After 15 March, Paytm Payments Bank will have to stop deposits, credit transactions and top-ups in customer accounts. 

Here is a detailed list of FAQs the Reserve Bank has issued to address questions around withdrawal, refund, salary credit, direct benefit transfers, electricity bill payment, EMIs Paytm FASTag and money transfer through UPI, among other concerns.

On withdrawing money from Paytm Payments Bank after 15 March and using debit card issued by the payments bank 

Customers can continue to use, withdraw or transfer funds from their account up to the available balance in your account.

Similarly, customers can continue to use their debit card to withdraw or transfer funds up to the available balance in your account.

On depositing or transferring money from savings bank or current account to Paytm Payments Bank

After 15 March, customers can’t deposit money into your accounts with Paytm Payments Bank. 

No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.

On refunds, cashbacks into Paytm Payments Bank 

Customers can get refunds, cashbacks, sweep-in from partner banks or interest rates even after 15 March.

On deposits maintained with partner banks through sweep in/out arrangements, after 15 March

The existing deposits of Paytm Payments Bank maintained with partner banks can be brought back (sweep-in) to the accounts the payments bank. This is subject to the ceiling on balance prescribed for a payments bank, which is Rs 2 lakh per customer at the end of the day. 

Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after 15 March.

On salaries getting credited into Paytm Payments Bank account

Customers will not be able to receive any such credits into their accounts with Paytm Payments Bank after 15 March. RBI has suggested that customers make alternative arrangements with another bank before 15 March to avoid inconvenience.

On subsidies and direct benefit transfers getting credited into Paytm Payments Bank

After 15 March, customers will not be able to receive any such credit into their accounts with Paytm Payments Bank. RBI has advised customers to change their linked accounts to another bank before 15 March to avoid any inconvenience or disruption.

On paying electricity bills, EMIs and OTT bills through Paytm Bank Ltd

Withdrawal and debit mandates will continue to get executed till there is balance available in customers’ account. But no credit or deposit will be allowed after 15 March. RBI has asked customers to make alternative arrangements through another bank before 15 March so that they can avoid inconvenience or disruption. 

 On Paytm wallet

Customers can use, withdraw or transfer to another wallet or bank account up to the balance available in the wallet after 15 March. However, they cannot top-up or transfer money into the wallet or receive credits into this wallet.

Refunds and cashbacks are allowed to be credited beyond 15 March.

If the customers want to close the wallet with Paytm Payments Bank and transfer it into their bank account with another bank, they can do so.

On Paytm FASTag

Customers can use their FASTag to pay toll up to the available balance after 15 March. However, no further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after 15 March.

RBI has asked customers to get a new FASTag issued by another bank before 15 March.

Further, customers cannot transfer their balance from their old FASTag to a new FASTag from another bank. In this case, RBI has suggested customers close their FASTag issued by Paytm Payments Bank and request a refund.

On money transfer through UPI/IMPS

Customers cannot transfer money into their Paytm Payments Bank account through UPI/IMPS after 15 March. But they can withdraw the money up to the balance available in their account.

On business restriction placed on Paytm Payments Bank by RBI on 11 March 2022

The business restriction dated 11 March 2022, prohibiting Paytm Payments Bank from onboarding any new customers for any of its services, continues to be in force. 

Paytm Payments Bank cannot onboard any new customers after 11 March 2022.