It was January 31 when the fintech world saw a major announcement by the country’s central bank. The RBI had issued a circular that restricted Paytm Payments Bank Limited (PPBL) from accepting deposits from customers and credit transactions.
The guidelines were issued by the bank for Paytm’s "persistent non-compliance and continued material supervisory concerns." March 15 is the deadline set by the RBI for Paytm, after which the fintech giant must comply with certain restrictions.
Let’s have a look at the services that will work after March 15:
Withdrawal of money
Yes, you can still withdraw and transfer money from your existing fund or wallet. Further, you can also withdraw from your Paytm account using UPI or IMPS.
NACH Mandates
If there is money in your account, you can still withdraw or make payments using methods like the National Automated Clearing House (NACH). However, you won’t be able to receive or deposit money into this account. With the help of NACH, corporations collect electricity bills, premiums, water bills, and others.
Cashbacks and refunds
You can continue to access refunds and cash backs both from partner banks and Paytm Payments Bank.
OTT Payment
If your Netflix or Amazon Prime subscription is tied up with Paytm, you should note that you can make payments for the subscriptions as long as your account has a balance. But, post-March 15, one must shift to another bank account to do the same.
Let’s have a look at the services that would be disrupted after March 15:
FASTag
FASTag functionalities and top-ups won’t be available. Similarly, balances issued by Paytm for FASTag cannot be transferred to another FASTag.
As per the National Electronic Toll Collection, “FASTag is a device that employs Radio Frequency Identification (RFID) technology for making toll payments directly while the vehicle is in motion.”
Transfer and fund transfer
Come March 15, you won’t be able to transfer money into Paytm Payments Bank using UPI or IMPS. Regarding fund transfers, direct benefit transfers or salary transfers won’t be received from other Paytm Payments Bank users.
Paytm has been in deep trouble for a while. In Outlook Business’s recent cover story, it has been mentioned that the central bank gave four warnings to the fintech for its non-compliance with fintech guidelines. It remains to be seen if the fintech giant will be a phoenix or doom further.
