Paytm payments bank is your money safe after februry 29 all questions related to rbi ban

The Reserve Bank of India (RBI) on 31 January 2024 prevented Paytm Payments Bank (PPBL) to open new accounts due to some serious shortcomings, accept deposits in already existing accounts and complete KYC procedures. After this news came out, there was a sudden stir and many rumors started spreading in social media. However, both Paytm and RBI have tried to make people aware of this decision, which states which service will continue in Paytm Payments Bank since February 29 and which will be closed. However, even after that, those who have an account in PPBL are afraid of many things. Through this post, we are answering those important questions through which we expect the dilemma of PPBL account holders to end.

If your bank account is in Paytm Payments Bank, this ban will directly affect you. However, what is the level of this effect and you will be able to take advantage of which service from 29 February and not the service, let us tell you in detail.

Question 1: Why was Paytm Payments Bank banned?

Answer: RBI banned the Paytm Payments Bank due to violations of KYC rules and flaws in data security structure. Almost all the service of PPBL is being closed from March 1. However, some service will be kept on for some time to avoid the convenience of account holders and any panic position.

Question 2: What will be the impact of this ban on your Paytm Payments Bank Account?

Answer: You can transfer funds, credit, UPI transactions, and funds in your Paytm Payments Bank Account by 29 February 2024. After 29 February 2024, you will not be able to deposit money in your Paytm Payments Bank Account. In such a situation, you can keep your money in the bank or withdraw it and deposit it in another bank account.

The RBI has said that the current customers of the bank will be able to withdraw money from their accounts and use it until the balance available in their bank account is over. In addition, the RBI has said that all pipeline transactions and nodal accounts started on or before 29 February 2024 will be completed by March 15, 2024. After 14 March, no such transactions will be allowed.

Question 3: How can you withdraw money from your Paytm Payments Bank Account?

Answer: Even after 29 February 2024, you can withdraw money from your Paytm Payments Bank Account through ATM, UPI, or Paytm app.

Question 4: Is your money insured under DICGC in PPBL?

Answer: Yes, according to the rules, individual deposits of up to Rs 5 lakh are safe in all regulated banks under RBI in case the loan bank is bankrupt. Under the DICGC, all commercial banks including branches of foreign banks working in India, local sector banks and regional rural banks are insured.

Question 5: Should you close your Paytm Payments Bank Account?

Answer: It depends on your own will. If you do not want to make a new deposit in your Paytm Payments Bank Account after 29 February 2024, then you can close your account.

Question 6: How can you close your Paytm Payments Bank Account?

Answer: You can close your account by contacting Paytm Payments Bank App or Paytm Payments Bank Customer Service.

Question 7: Can you transfer your Paytm Payments Bank Account to another bank?

Answer: No, you cannot transfer Paytm Payments Bank Account to another bank.

Question 8: Will all services of Paytm be closed?

Answer: Paytm Founder and CEO Vijay Shekhar Sharma said last year that Paytm Payments Bank Limited i.e. PPBL and Paytm app owned by One97 Communication Limited (OCL) are two separate companies. Even after the closure of the bank, you will be able to use the Paytm app and will be able to take advantage of many other services including recharge, bill payment.