The Reserve Bank of India on Friday extended the deadline until March 15 for Paytm Payments Bank to stop fresh deposits or top-ups in any customer accounts, wallets or prepaid instruments. The earlier deadline was February 29.

The central bank said this was being done in view of the interests of customers, including merchants, of the Paytm Payments Bank who may need some more time to make alternative arrangements.

The Reserve Bank of India directed the bank to ensure that customers can withdraw or use the balance amount in their accounts even after March 15.

On January 31, the central bank barred Paytm Payments Bank from accepting fresh deposits or top-ups from February 29, citing persistent non-compliance and continued material supervisory concerns. The deadline has now been extended by 15 days.

In a list of clarifications issued on Friday, the Reserve Bank of India said that customers can continue to get refunds and cashbacks in their Paytm Payments Bank accounts. However, they cannot receive salaries, subsidies or Aadhaar-linked direct benefit transfers after March 15.

Customers who have FASTag issued by Paytm Payments Bank can use the service to pay toll up to the available balance. However, they will not be able to top up or recharge FASTag issued by Paytm Payments Bank after March 15.

Paytm quick response (QR) codes, soundboxes and card machines can continue to function after March 15.