The information provided outlines the directives and implications of the Reserve Bank of India’s (RBI) decision regarding Paytm Payments Bank (PPBL). Here’s a breakdown and explanation of the key points:
1. Directive from RBI: The RBI has directed Paytm Payments Bank PPBL to cease certain services like deposits, credit transactions, and FASTag recharges starting from March 15 due to non-compliance with regulations and supervisory issues.
2. Impact on Customers:
Money Depositing: Customers won’t be able to deposit money into their Paytm Payments Bank PPBL accounts after March 15. This includes salary credits, direct benefit transfers, or subsidies.
UPI and IMPS Functions: Usage of Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) will be discontinued through PPBL accounts.
Withdrawal and Transfer: Customers can still withdraw and transfer money, including refunds, winnings, and cashbacks from partner banks.
Paytm Wallet: Top-up and transfer facilities for Paytm Payments Bank PPBL wallets will be disabled, but existing funds in the wallet can still be used for transactions and payments.
3. FASTag Services: PPBL will no longer be authorized to provide FASTag services. The National Highways Authority of India (NHAI) has updated its list of authorized banks and non-banking financial companies (NBFCs) for issuing FASTags, excluding PPBL from the list.
4. Impact on Securities Market Transactions: The Bombay Stock Exchange (BSE) has advised investors who have registered bank accounts only with PPBL to consider registering accounts with other banks instead. This is because the restrictions on PPBL accounts might affect securities market transactions for these investors.
Overall, the directive from RBI and subsequent actions by PPBL have significant implications for its customers, particularly in terms of banking services and securities market transactions. Customers are advised to take necessary actions such as withdrawing funds or registering alternative bank accounts for seamless transactions.