Paytm Payments Bank releases FAQs on refund, closing FASTag accounts

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Paytm Payments Bank Ltd (PPBL) issued frequently asked questions (FAQs) for its users on Friday, addressing concerns about the minimum balance of FASTag accounts and the refund of security deposits.
 

According to the FAQs, no further funding or top-ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15. 
 

The Reserve Bank of India (RBI) stated that customers using PPBL FASTags can continue to use their current balance for toll payments even after March 15.

On January 31, RBI imposed restrictions on PPBL under section 35A of Banking Regulation Act, 1949. RBI has directed PPBL to stop onboarding of new customers with immediate effect and barred the payments bank from taking fresh deposits after February 29, 2024.

Later, the central bank extended the deadline for fintech major till March 15.

Why did RBI barred PPBL?
 

RBI said in its press release of January 31 that PPBL is barred after “Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.”

Here are the FAQs PPBL issued on its website:

What does the RBI directive mean for my Paytm Payments Bank Account/Wallet/Fixed Deposit/Transit Card? Is my money safe?
 

The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account/Wallet from accepting new deposits or allowing credit transactions after March 15, 2024.

Please note that you will not be able to deposit or add money to your Paytm Payments Bank Account/Wallet after March 15, 2024. However, there is no restriction on withdrawal of money from your existing balance even after March 15, 2024.

The directive does not impact your existing balances in Account or Wallet and your money is safe with your Bank.

Bank Accounts with Paytm Payments Bank
 

I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024? Can I continue to use my debit card issued by Paytm Payments Bank?
 

The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account from accepting new deposits or allowing credit transactions after March 15, 2024. However, you can continue to use, withdraw or transfer your funds from your account up to the available balance in your account. Similarly, you can continue to use your debit card to withdraw or transfer funds up to the available balance in your account.

The directive does not impact your existing balances in Account and your money is safe with your Bank.

I have a savings bank or current account with Paytm Payments Bank. Can I deposit or transfer money into this account after March 15, 2024?
 

The Reserve Bank of India (RBI) has issued a directive prohibiting Paytm Payments Bank from accepting new deposits or facilitating credit transactions after March 15, 2024. However, interest, cashbacks, sweep-ins from partner banks, or refunds are permitted to be credited.

Paytm Payments Bank Wallet

I have a wallet with Paytm Payments Bank. Can I continue to use money from this wallet after March 15, 2024?

The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Wallet from accepting new deposits or allowing credit transactions after March 15, 2024. However, you can continue to use, withdraw or transfer to a bank account up to the balance available in the wallet. Minimum KYC wallets1 can, however, be used only for merchant payments.

The directive does not impact your existing balances in Wallet and your money is safe with your Bank.

1As 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.