Reserve Bank of India has relaxed the deadline on most of the restrictions imposed on Paytm Payments Bank to March 15 from Feb 29, including accepting fresh deposits. According to the latest development, the company clarified that Paytm QR codes and soundboxes that are not linked to PPBL will continue to work after mid-March.Taking it to his X handle, Vijay Shekhar Sharma, the owner of One97 Communications, the parent company of Paytm announced, Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15. The latest FAQ issued by RBI on point #21 clarifies it unambiguously. Do not fall for any rumour or let anyone deter you to championing Digital India ! Paytm QR, Soundbox and EDC (card machine) will continue to work like always, even after March 15.The latest FAQ issued by RBI on point #21 clarifies it unambiguously.Do not fall for any rumour or let anyone deter you to championing Digital India ! https://t.co/ts5Vqmr6qh— Vijay Shekhar Sharma (@vijayshekhar) February 16, 2024While RBI have taken tough stance on Paytm Payments Bank Ltd, has ensured that UPI services will remain intact and there will be no disruption in the services.It is worth to be noted that the decision from the fintech business Paytm has come after it has chosen to work with Axis Bank in order to start the seamless settlement of merchant transactions in the midst of the Paytm Payments Bank problem. The parent firm of Paytm, One97 Communications, moved its nodal account from Paytm Payments Bank to Axis Bank. According to a regulatory filing by the business, this action will enable Paytm QR, Soundbox, and card machine to continue operating beyond the March 15 deadline imposed by the Reserve Bank of India (RBI).Business restrictions on Paytm Payments Bank Limited were imposed on January 31.Here are some of the questions that have been answered in the press release:What will happen to the Deposits maintained with partner banks through sweep in/out arrangements, after March 15, 2024The information states that customers of Paytm Payments Bank may sweep-in their existing deposits from partner banks back into Paytm Payments Bank accounts, subject to the daily maximum balance allowed by each Payments Bank (₹2 lakh for each customer). Such sweep-ins will still be permitted in order to make the amounts available for the consumer to utilize or remove. But after March 15, 2024, no new deposits made through Paytm Payments Bank with partner banks would be accepted.Can customers continue to use money from this wallet after March 15, 2024Yes! Customers can continue to use, withdraw or transfer to another wallet or bank account upto the balance available in the wallet. Minimum KYC wallets (1) can, however, be used only for merchant payments.Other than this, several other frequently asked questions have been answered in the release.
