RBI Extends Paytm Bank Deadline Amid Compliance Issues

The extended deadline to March 15 allows customers and merchants to make alternative arrangements.

The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank to wind down its operations to March 15, 2024, due to persistent non-compliance with regulations and a money laundering probe.
Paytm Payments Bank customers can use, withdraw, or transfer funds until March 15, but no fresh deposits will be accepted after this date.
Paytm has shifted its nodal account to Axis Bank to ensure seamless merchant settlements and maintain the functionality of Paytm QR codes, soundboxes, and card machines beyond March 15.
The RBI's decision impacts a wide range of services including bank accounts, wallets, FASTags, and National Common Mobility Cards, with no further deposits or credit transactions allowed after March 15.
Despite the extension, Paytm Payments Bank faces significant compliance challenges, with implications for customers, merchants, and the broader fintech ecosystem.