Notably, this is an extended deadline. The RBI on January 31 directed PPBL to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29, due to concerns around large-scale non-compliance of regulations and supervisory issues.
Particularly, the fintech startup was found to be in breach of know-your-customer (KYC) requirements and other RBI-mandated processes.
Besides the RBI, the BSE has also issued guidelines for investors to keep in mind while using the payments bank for stock trading; and the NHAI has removed it from its list of options for FASTag options.
So, what do you need to know as customers before PPBL winds down services? Take a look here.
Here’s What Will Be Affected: All You Need to Know
Depositing Money: Customers will no longer be able to deposit money into their PPBL accounts from March 15 onwards. Similarly, salary credit, direct benefit transfers or subsidies via PPBL accounts will also be halted.
UPI and IMPS Functions: Customers will be unable to use the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) function through their PPBL accounts from March 15 onwards.
Money Withdrawal and Transfer: Customers will be allowed to keep withdrawing and transferring money from their PPBL accounts. Besides this, refunds, winnings and cashbacks from partner banks will be processed.
Wallets Functions: Customers will be unable to use top-up and transfer facilities for their PPBL wallets after March 15. They will be allowed to use existing money from the wallet for transactions and payments.
FASTag Recharge: Customers will not be able to recharge their PPBL-issued FASTags. Paytm FASTag users should procure a new one issued by another bank as soon as possible to ensure a seamless travel experience and avoid inconvenience at toll plazas, the National Highways Authority of India (NHAI) stated in an advisory.
NCMC Cards: Customers will also not be able to recharge or top-up funds into their National Common Mobility Cards (NCMC) issued by PPBL.
For Merchants: The RBI said that merchants or businesses accepting payments using a Paytm QR code, Paytm soundbox or Paytm PoS (point-of-sale) terminal can continue to use it even after March 15 if their receipt and transfer of funds is linked to a bank account other than PPBL.
Also Read | NPCI likely to grant Paytm third-party app licence this week: Report
List of Authorised Banks for Replacement of FASTag
The NHAI has updated its list of authorised banks and non-banking financial companies (NBFCs) that can issue FASTags.
The revised list includes 39 banks and NBFCs. These include prominent names such as Airtel Payments Bank, Axis Bank Ltd, Bandhan Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, and Yes Bank.
Other banks and NBFCs that have been authorised to issue FASTags are Allahabad Bank, AU Small Finance Bank, Bank of Maharashtra, Central Bank of India, City Union Bank Ltd, Cosmos Bank, Dombivli Nagari Sahakari Bank, Equitas Small Finance Bank, Federal Bank, Fino Payment Bank, Indian Bank, Indian Overseas Bank, J&K Bank, Karnataka Bank, Karur Vysya Bank, LivQuik Technology Pvt Ltd, Nagpur Nagarik Sahakari Bank Ltd, Punjab Maharashtra Bank, Saraswat Bank, South Indian Bank, Syndicate Bank, The Jalgaon People’s Co-op Bank, Thrissur District Cooperative Bank, and UCO Bank.
Register alternate bank accounts: BSE tells investors
The BSE has in a press release on March 12 told investors, to register accounts opened with other banks instead of their PPBL account with the trading members (stock brokers) to avoid disruptions.
“Investors’ attention is drawn to recent regulatory action announced by the Reserve Bank of India whereby they have put restrictions on PPBL … effective March 15, 2024. Investors are hereby informed that these restrictions may impact the securities market transactions of those investors who have registered bank accounts of only PPBL, with their Trading members. In view of the same, investors are advised to review their current banking arrangements and add additional bank accounts with other banks to avoid any impact on transactions on account of the aforementioned RBI directive,” the press release said.
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Published: 14 Mar 2024, 02:05 PM IST