India cenbank extends deadline for Paytm unit wind-down to March 15

By Thomson Reuters Feb 16, 2024 | 6:04 AM

By Swati Bhat and Ira Dugal

MUMBAI (Reuters) – India’s central bank has extended the deadline for winding down operations of Paytm Payments Bank, an associate of One 97 Communications or Paytm, by 15 days to March 15, it said on Friday.

The Reserve Bank of India in a January order had asked the Paytm unit to stop accepting any fresh deposits in its account or popular wallet from Feb. 29.

The action was triggered by persistent and serious supervisory concerns, the central bank had said. Earlier this week, the country’s crime fighting agency too began looking into details of overseas transactions on the platform.

RBI said it was extending the deadline “keeping in view the interest of customers, including merchants, who may require a little more time to make alternative arrangements”.

“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc after March 15, 2024,” the notification said.

Separately, the Reserve Bank of India also issued a detailed FAQ on the impact of its order on Paytm Payments Bank.

(Reporting by Swati Bhat; Editing by Jan Harvey)