After Paytm, more payments banks under RBI scanner for money laundering: Report

The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank (PPBL) restrictions to March 15. Earlier, the deadline for the restrictions was February 29. The central bank has given 15 more days till March 15 to PPBL to stop deposits, credit transactions and top-ups in customer accounts. It has also asked the bank to facilitate seamless withdrawal of customer deposits parked with partner banks.

The update comes in response to queries raised by members of the public about the stringent curbs imposed on Paytm Payments Bank on January 31. RBI said the customers can make deposits, credit transactions, prepaid services, wallets, FASTags, National Common Mobility Cards till March 15, 2024.

"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 (extended from the earlier stipulated timeline of February 29, 2024), other than any interest, cashbacks, sweep in from partner banks or refunds which may be credited anytime," it said in a statement.