Paytm, a prominent digital payments firm in India, is expected to obtain approval from the National Payments Corp of India (NPCI) for a third-party application provider license by March 15. This license is crucial for Paytm as it will allow the company to continue offering its services to customers through its app even after the scheduled closure of its banking subsidiary, Paytm Payments Bank.
The Reserve Bank of India (RBI), the country's central bank, has set a deadline of March 15 for Paytm Payments Bank to wind up its operations. Despite some expectations for an extension, sources suggest that the RBI is unlikely to prolong this deadline. This decision was prompted by concerns surrounding the ongoing crisis involving Paytm Payments Bank, which has raised worries among both customers and regulatory authorities.
In response to the situation, the RBI previously extended the deadline for Paytm Payment Bank customers to conduct deposits and credit transactions until March 15, as announced on February 16, 2024. This extension was intended to provide customers with more time to manage their accounts amid the uncertainties surrounding the bank's operations.
The RBI had earlier directed Paytm Payments Bank to cease accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments starting from February 29, 2024. This directive was issued due to persistent non-compliance and supervisory concerns identified by the RBI, based on audit reports and compliance assessments.
Moreover, on February 16, 2024, the RBI issued a set of frequently asked questions (FAQs) addressing concerns related to the Paytm crisis. These FAQs aimed to provide clarity on various issues and alleviate uncertainties among stakeholders regarding the future of Paytm Payments Bank and its customers.
