RBI FAQs on Paytm: Know bill settlement, wallet usage rules linked to Paytm Payments Bank after March 15

The Reserve Bank of India (RBI) on Friday extended the timeline for services linked to Patym Payments Banks. The banking arm was barred by the central bank last month from accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29, 2024. This deadline was extended to March 15. 

The central bank has also released detailed FAQs for customers of Paytm Payments Bank about banking services, UPI, wallet, FASTag and more.

Here's a look at the rules around the services linked to Paytm Payments Bank.

The central bank said that customers and merchants won't be allowed to make deposits or top-ups into their accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards (NCMC) after March 15, 2024.

"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 March 15, 2024 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime," RBI said.

However, exceptions include interest, cashbacks, sweep-ins from partner banks, or refunds, which may be credited at any time. Customers will be free to withdraw or utilise their balances without any restrictions, as previously stated.

Except for withdrawals and balance utilisation, the bank will be prohibited from providing any other banking services, such as fund transfers, including Aadhaar Enabled Payment System (AEPS), Immediate Payment Service (IMPS), etc, Bharat Bill Payment Operating Unit (BBPOU), and Unified Payments Interface (UPI) facility, after March 15, 2024.

Fund transfers, including AEPS, IMPS, and UPI, may still be allowed for the purpose of withdrawals or utilisation, RBI said.

Paytm Payments Bank Wallet

FAQ 11: I have a wallet with Paytm Payments Bank. Can I continue to use money from this wallet after March 15, 2024?
Yes. You can continue to use, withdraw or transfer to another wallet or bank account up to the balance available in the wallet. Minimum KYC wallets1 can, however, be used only for merchant payments.

FAQ 12: I have a wallet with Paytm Payments Bank. Can I top-up or transfer money into this wallet after March 15, 2024? Can I receive money from any other person into this wallet after March 15, 2024?
No. After March 15, 2024 you will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet.

FAQ 13.I have a cashback due in my wallet with Paytm Payments Bank. Can I receive this cashback after March 15, 2024?
Yes. Refunds and cashbacks are allowed to be credited.

FAQ 14.I have a wallet with Paytm Payments Bank. Can I close this wallet and have the balance transferred to my bank account with another bank?
Yes. You may approach Paytm Payments Bank or use its banking app to close your wallet and transfer the balance to an account maintained with another bank in the case of full KYC wallets. In the case of minimum KYC Wallets2, you may use the available balance or request for a refund.

FAQ 15.I have a wallet with Paytm Payments Bank. Can I close this wallet and have the balance transferred to my bank account with another bank?
Yes. You may approach Paytm Payments Bank or use its banking app to close your wallet and transfer the balance to an account maintained with another bank in the case of full KYC wallets. In the case of minimum KYC Wallets2, you may use the available balance or request for a refund.

1 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

2 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

Bharat Bill Payment System (BBPS)

FAQ 23. Can I make payments through the Bharat Bill Payment System (BBPS) using my account with Paytm Payments Bank?
Yes. You can continue to make payments from your Paytm Payments Bank account through Bharat Bill Payment System upto the balance available in your account. Since you will not be able to credit any further funds into your accounts or wallets with Paytm Payments Bank after March 15, 2024, it is advised that you may make alternative arrangements with another bank account for BBPS before March 15, 2024.

UPI payments

FAQ 25. Can I transfer my money into my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?
No. You cannot transfer the money into your Paytm Payments Bank account after March 15, 2024.

FAQ 26: Can I withdraw my money from my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?
Yes. You can withdraw your money from Paytm Payments Bank account through UPI/ IMPS up to the balance available in your account.

Merchants using Paytm Payments Bank

FAQ 21. I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox 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.

FAQ 22.I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox, 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?

No. After March 15, 2024 you will not be able to receive any credit into your bank account or wallet with Paytm Payments Bank other than refunds, cashbacks, sweep-in from partner banks or interest. In order to avoid any inconvenience or disruption, it is suggested that you may obtain a fresh QR code linked to an account with another bank or wallet to receive payments. You may also change your bank account details (in which you receive payments) through your service provider.