Paytm Payments Bank To Shut Down After March 15 Know everything

Paytm Payments Bank will stop providing services like deposits and credit transactions from March 15. As per the instructions of the Reserve Bank of India, Paytm Payments Bank was banned on January 31 citing serious violation of rules. Bombay Stock Exchange (BSE) has also issued guidelines for investors who use the bank for stock trading.

Why is Paytm Payments Bank closing?

The Reserve Bank of India ordered the closure of Paytm Payments Bank due to non-compliance issues and concerns within the bank. A report said that thousands of accounts in the bank were opened without proper identification, raising the possibility of illegal activities like money laundering. According to sources, this information was also shared with officials including the ED and the Prime Minister's Office. Revenue Secretary Sanjay Malhotra mentioned that the ED will investigate Paytm Payments Bank, which is set to be temporarily closed till March 15. It has also been revealed in the report that many accounts are linked to the same identity card, in which there are many transactions. Apart from this, the number of closed accounts was also quite high.

What will change after Paytm Payments Bank is closed?

Customers will not be able to deposit money in their Paytm Payments Bank account, but will be able to withdraw or transfer money even after March 15. Salary credit, direct benefit transfer or subsidies will not be available in Paytm Payments Bank account, but refunds, cashback and sweep-in from partner banks will still be available. Customers will not get the facility of features like top-up or transferring money in their wallet after March 15. However, if there is balance available in their account then they can make the payment.

Customers will not be able to recharge their Fastag issued by Paytm Payments Bank. Recharge or top-up of funds in NCMC cards issued by Paytm Bank will no longer be available. After March 15, customers will not be able to transfer money to Paytm Payments Bank account through UPI or IMPS.