Friday, February 16, 2024

Understanding the RBI's Restrictions on Paytm Payments Bank

The Reserve Bank of India (RBI) has recently imposed certain restrictions on Paytm Payments Bank, impacting how customers can use their accounts and wallets. This article aims to simplify the details provided in the RBI's circular for better understanding. We've broken down the frequently asked questions (FAQs) into easy-to-digest points and provided tables for clarity.

Table 1: Bank Accounts with Paytm Payments Bank

QuestionCan you do it after March 15, 2024?Remarks
Withdraw or use debit cardYesUp to the available balance
Deposit or transfer money into accountNoExceptions include interest, cashbacks, sweep-in from partner banks, or refunds
Receive refundsYesRefunds, cashbacks, sweep-in from partner banks, or interest are allowed
Receive salaryNoMake alternative arrangements
Receive subsidies or direct benefit transfersNoChange your linked account before March 15, 2024
Pay monthly electricity bill or OTT subscriptions through automatic mandatesYesUntil there's balance; no new credits allowed post-March 15, 2024
Pay loan EMIs through accountYesUntil there's balance; no new credits allowed post-March 15, 2024
Pay loan EMIs through another bankYesNot affected

Table 2: Paytm Payments Bank Wallet

QuestionCan you do it after March 15, 2024?Remarks
Use money from the walletYesUp to the available balance; minimum KYC wallets can only be used for merchant payments
Top-up or transfer money into the walletNoExceptions include cashbacks or refunds
Receive cashbackYesCashbacks and refunds are allowed
Close wallet and transfer balanceYesFor full KYC wallets; minimum KYC wallets can use the balance or request refunds

Key Takeaways:

  • Post March 15, 2024, you cannot deposit money into your Paytm Payments Bank accounts or wallets, except for certain exceptions like interest, cashbacks, or refunds.
  • Automatic payments like bill payments, OTT subscriptions, or EMI mandates can continue until there's a balance in your account.
  • Receiving salaries or government subsidies directly into your Paytm Payments Bank account will not be possible post-March 15, 2024. It's advisable to link another bank account for these purposes.
  • For Wallet Users, post-March 15, 2024, you can use the existing balance for transactions or merchant payments (in the case of minimum KYC wallets). However, adding money or receiving transfers from others into the wallet will be restricted.


The RBI's restrictions on Paytm Payments Bank necessitate immediate action from its customers to avoid inconvenience. It's crucial to understand these changes and make necessary arrangements, such as linking a different bank account for receiving salary or government subsidies and exploring alternative options for future deposits. If you have a Paytm wallet, be mindful of the restrictions on adding funds post-March 15, 2024, and plan your transactions accordingly.