Customers and merchants of Paytm Payments Bank Ltd (PPBL) were given an additional 15 days by the RBI on Friday to move their accounts to other banks.

Paytm is now required to cease the majority of its activities, including credit and deposit transactions, by March 15. The previous cutoff date was February 29.

The RBI further explained that PPBL customers will be able to take out or use their balances from their current and savings accounts, prepaid cards, FASTags, and National Common Mobility Cards at any time after March 15 without any limitations, provided that they still have available funds. However, additional top-ups won’t be permitted.

To prevent inconvenience, it requested that all customers make alternate plans with a different bank by March 15, 2024.

Subject to the Rs 2 lakh balance cap, PPBL customers’ current deposits held with partner banks may be refunded (sweep-in) to their PPBL accounts. These customer sweep-ins for use or withdrawal are still permitted, but after March 15, no new deposits made through PPBL with partner banks are permitted. Clients using PPBL to pay for OTT subscriptions or EMIs will need to make other plans.

After March 15, businesses that accept payments via Paytm QR codes, Paytm soundboxes, or Paytm POS terminals connected to PPBL accounts or wallets will not be able to use the service and should search for other options.

Wallet services, FASTags and NCMC cards issued by Paytm Payments Bank can be used until the balance is exhausted beyond March 15, but no fresh deposits will be allowed