RBI Extends Deadline For Paytm Unit Wind-Down To March 15

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RBI Extends Deadline For Paytm Unit Wind-Down To March 15

MUMBAI:

Paytm Funds Financial institution received a much-sought after extension from the Reserve Financial institution of India to wind down its operations on Friday, at the same time as its abroad transactions are beneath the scanner of the federal monetary crime preventing company.

The RBI in a January order had requested Paytm Funds Financial institution, an affiliate of One 97 Communications or Paytm, to cease accepting any recent deposits in its account, or fashionable pockets, from Feb. 29. The deadline is now prolonged to March 15, RBI stated.

The motion was triggered by persistent and critical supervisory considerations. Earlier this week, the nation’s crime preventing company started wanting into particulars of abroad transactions on the platform.

RBI stated the deadline extension was to permit prospects, together with retailers, “a little bit extra time” to make different preparations.

“No additional deposits or credit score transactions or high ups shall be allowed in any buyer accounts, pay as you go devices, wallets, FASTags, Nationwide Widespread Mobility Playing cards, and so on after March 15, 2024,” it stated.

Individually, the RBI additionally issued an in depth set of buyer clarifications.

The regulator stated prospects can withdraw or use funds from their Paytm Funds Financial institution accounts and wallets until the time these funds are exhausted however they can’t add any recent funds after March 15.

Prospects who obtain their salaries or different transfers together with authorities subsidies into these accounts should make alternate preparations by mid-March.

Retailers utilizing Paytm’s QR codes for accepting funds can proceed to take action if these QR codes are linked to accounts apart from these held by Paytm Funds Financial institution.

The financial institution has practically a fifth share of India’s toll collections by means of a product known as FASTag. RBI stated these FASTags can’t be recharged or topped up after March 15.

Non-executive chairman of Paytm Funds Financial institution Vijay Shekhar Sharma has met with RBI officers and the finance minister looking for respite, however RBI Governor Shaktikanta Das stated on Monday that there can be no evaluate of its resolution.

(Aside from the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)



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