FAQ Released By RBI on PAYTM

PAYTM Payments Bank has been in news for quite some time now due to various reasons such as RBI Banning onboarding of new customers, RBI Banning PAYTM to operate its Payment Banking Business, ED summons etc. Recently RBI Governor has again shown no Interest in reconsidering their decision to stop PAYTM for operating its Payment Bank licence. Shares of Its Parent Company One 97 Communication is at all time low and various analyst are downgrading and cutting targets of PAYTM. Investors of PAYTM is suffering from anxiety as shares of the Company is down by more than 80%.

There is various rumours in the market regarding withdrawal of deposits, closing of the whole company, Money Laundering etc. PAYTM has also issued various clarification in its exchange filings to clear all these rumours but still more clarity was required by the Account holders of Paytm Payment Bank. 

The consumers of PAYTM has been facing various questions related to our deposits with PAYTM Bank and what will be effect of PAYTM accounts after 29th February 2024. To answer all our queries, yesterday on 16 Feb 2024 RBI has released a list of FAQs on Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024. 

Below is the link through which readers can directly read full text of FAQs from RBI website. 

https://www.rbi.org.in/Scripts/FAQView.aspx?Id=164

We have also attached all FAQs below:

Bank Accounts with Paytm Payments Bank

1. I have a savings or current account with Paytm Payments Bank. Can I continue to withdraw money from this account after March 15, 2024? Can I continue to use my debit card issued by Paytm Payments Bank?

Yes. You can continue to use, withdraw or transfer your funds from your account upto the available balance in your account.

Similarly, you can continue to use your debit card to withdraw or transfer funds upto the available balance in your account.

2. I have a savings bank or current account with Paytm Payments Bank. Can I deposit or transfer money into this account after March 15, 2024?

No. After March 15, 2024, you will not be able to deposit money into your account with Paytm Payments Bank. No credits or deposits other than interest, cashbacks, sweep-in from partner banks or refunds are allowed to be credited.

3. I am expecting a refund in my account with Paytm Payments Bank after March 15, 2024. Can this refund be credited into my account?

Yes. Refunds, cashbacks, sweep-in from partner banks or interest are permitted credits into your account even after March 15, 2024.

4. What will happen to the Deposits maintained with partner banks through ‘sweep in/out’ arrangements, after March 15, 2024?

The existing Deposits of Paytm Payments Bank customers maintained with partner banks can be brought back (sweep-in) to the accounts with Paytm Payments Bank, subject to the ceiling on balance prescribed for a Payments Bank (i.e. ₹2 lakh per individual customer at the end of day). Such sweep-ins for the purpose of making available the balances for use or withdrawal by the customer will continue to be allowed. However, no fresh deposits with partner banks through Paytm Payments Bank will be allowed after March 15, 2024.

5. My salary is credited into my account with Paytm Payments Bank. Can I continue to receive my salary into this account?

No. After March 15, 2024, you will not be able to receive any such credits into your account with Paytm Payments Bank. It is suggested that you make alternative arrangements with another bank before March 15, 2024 to avoid inconvenience.

6. I receive a subsidy or certain direct benefit transfers linked to my Aadhar from the Government in my account with Paytm Payments Bank. Can I continue to receive it into this account?

No. After March 15, 2024, you will not be able to receive any such credit into your account with Paytm Payments Bank. Please arrange to change your linked account to another bank before March 15, 2024 to avoid any inconvenience or disruption.

7. My monthly electricity bill is paid automatically from my bank account with Paytm Bank Limited? Can this continue?

Withdrawal/debit mandates (such as National Automated Clearing House (NACH) mandates) will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

8. My monthly OTT subscription is paid automatically through UPI from my bank account with Paytm Payments Bank? Can this continue?

Withdrawal/debit mandates through automatic UPI mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience or disruption, it is suggested that you make alternative arrangements through another bank, before March 15, 2024.

9. The instalment (EMI) for my loan is automatically paid through my account with Paytm Payments Bank. Can this continue?

Auto debit mandates will continue to get executed till there is balance available in your account. However, after March 15, 2024, credit or deposit in your accounts will not be allowed. Therefore, to avoid inconvenience, it is suggested that you make alternative arrangements for setting up EMI payments through another bank before March 15, 2024.

10. The instalment (EMI) for my loan is automatically paid through my account with a bank other than Paytm Payments Bank. Can this continue?

Yes, EMIs registered with any bank other than Paytm Payments Bank can continue.

Paytm Payments Bank Wallet

11. I have a wallet with Paytm Payments Bank. Can I continue to use money from this wallet after March 15, 2024?

Yes. You can continue to use, withdraw or transfer to another wallet or bank account upto the balance available in the wallet. Minimum KYC wallets1 can, however, be used only for merchant payments.

12. I have a wallet with Paytm Payments Bank. Can I top-up or transfer money into this wallet after March 15, 2024? Can I receive money from any other person into this wallet after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or transfer money into the wallet or receive any credits, other than cashbacks, or refunds into this wallet.

13. I have a cashback due in my wallet with Paytm Payments Bank. Can I receive this cashback after March 15, 2024?

Yes. Refunds and cashbacks are allowed to be credited.

14. I have a wallet with Paytm Payments Bank. Can I close this wallet and have the balance transferred to my bank account with another bank?

Yes. You may approach Paytm Payments Bank or use its banking app to close your wallet and transfer the balance to an account maintained with another bank in the case of full KYC wallets. In the case of minimum KYC Wallets2, you may use the available balance or request for a refund.

FASTag issued by Paytm Payments Bank

(for more details on FASTag, you may visit website of IHMCL https://ihmcl.co.in)

15. I have a FASTag issued by Paytm Payments Bank. Can I continue to use it to pay toll after March 15, 2024?

Yes. You can continue to use your FASTag to pay toll upto the available balance. However, no further funding or top ups will be allowed in the FASTags issued by Paytm Payments Bank after March 15, 2024. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

16. I have a FASTag issued by Paytm Payments Bank. Can I recharge the balance after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or recharge your FASTag issued by Paytm Payments Bank. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

17. Can I transfer the balance from my old FASTag issued by Paytm Payments Bank to a new FASTag obtained from another Bank?

Credit balance transfer feature is not available in the FASTag product. Therefore, you will have to close your old FASTag issued by Paytm Payments Bank and request the bank for a refund.

National Common Mobility Card (NCMC) issued by Paytm Payments Bank

18. I have an NCMC card issued by Paytm Payments Bank. Can I continue to use it after March 15, 2024?

Yes. You can continue to use your NCMC card upto the available balance. However, you will not be able to load or top up funds into the card after March 15, 2024. In order to avoid inconvenience, it is suggested that you obtain an NCMC card issued by another bank or non-bank pre-paid instrument (PPI) issuer, before March 15, 2024.

19. I have an NCMC card issued by Paytm Payments Bank. Can I add to its balance through top-up, recharge, etc. after March 15, 2024?

No. After March 15, 2024 you will not be able to top-up or recharge your NCMC card issued by Paytm Payments Bank. In order to avoid inconvenience, it is suggested that you obtain an NCMC card issued by another bank or non-bank pre-paid instrument (PPI) issuer, before March 15, 2024.

20. Can I transfer the balance from my old NCMC card issued by Paytm Payments Bank to a new card obtained from another Bank?

Balance transfer feature is not available in the NCMC card. Therefore, you may use the card upto the available balance. In case you have some more balance which you have not been able to use, you may request Paytm Payments Bank for a refund.

Merchants using Paytm Payments Bank to receive payments

21. I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox or Paytm POS terminal, linked to another bank account (not with Paytm Payments Bank). Can I continue to use this set-up even after March 15, 2024?

Yes. If your receipt and transfer of funds is linked to any bank account other than Paytm Payments Bank, you can continue to use this arrangement even after March 15, 2024.

22. I am a merchant and I accept payments using a Paytm QR code, Paytm soundbox, Paytm POS terminal linked to my bank account or wallet with Paytm Payments Bank. Can I continue to use this set-up even after March 15, 2024?

No. After March 15, 2024 you will not be able to receive any credit into your bank account or wallet with Paytm Payments Bank other than refunds, cashbacks, sweep-in from partner banks or interest. In order to avoid any inconvenience or disruption, it is suggested that you may obtain a fresh QR code linked to an account with another bank or wallet to receive payments. You may also change your bank account details (in which you receive payments) through your service provider.

Bharat Bill Payment System (BBPS)

23. Can I make payments through the Bharat Bill Payment System (BBPS) using my account with Paytm Payments Bank?

Yes. You can continue to make payments from your Paytm Payments Bank account through Bharat Bill Payment System upto the balance available in your account. Since you will not be able to credit any further funds into your accounts or wallets with Paytm Payments Bank after March 15, 2024, it is advised that you may make alternative arrangements with another bank account for BBPS before March 15, 2024.

Aadhar enabled Payment System (AePS)

24. Can I make withdrawals from my Paytm Payments Bank account with biometric authentication under Aadhar enabled Payment System?

Yes. You can continue to withdraw using the AePS authentication, upto the balance available in your account.

Money Transfer through UPI/ IMPS

25. Can I transfer my money into my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?

No. You cannot transfer the money into your Paytm Payments Bank account after March 15, 2024.

26. Can I withdraw my money from my Paytm Payments Bank account through UPI/ IMPS after March 15, 2024?

Yes. You can withdraw your money from Paytm Payments Bank account through UPI/ IMPS upto the balance available in your account.

Paytm Payments Bank Business Correspondent

27. I have an account with Paytm Payments Bank. Can the Paytm Payments Bank Business Correspondent (also referred to as Paytm Payments Bank Agent) help me in withdrawing funds from my account after March 15, 2024.

Yes. The Paytm Payments Bank Business Correspondent (Bank Agent) can help you to withdraw money from your bank account upto the balance available in your account.

Accounts frozen, lien marked etc.

28. What will happen to my Paytm Payments Bank account/wallet if there is a lien or freeze marked on the directions of Law Enforcement or judicial authorities?

Any lien or freeze (full or partial) marked as per the instructions of any law enforcement or judicial authorities on the account/wallet of a customer with Paytm Payments Bank will continue to be governed by the orders passed by such authorities.

29. What will happen to my Paytm Payments Bank account/ wallet if there is a lien or freeze marked on account of internal policies of Paytm Payments Bank?

The bank has been directed to allow withdrawal or transfer to another bank account of the customer, upto the available balance in the account / wallets.

Onboarding of new customers

30. What is the status of the Business restriction placed on Paytm Payments Bank vide RBI Press Release dated March 11, 2022?

The business restriction dated March 11, 2022, prohibiting Paytm Payments Bank from onboarding any new customers for any of its services continues to be in force. Hence, Paytm Payments Bank cannot onboard any new customers after March 11, 2022.

(updated as at February 16, 2024)

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1 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

2 As per extant directions, small pre-paid Instruments (PPI) are issued by banks and non-banks after obtaining minimum details of the PPI holder. They can be used only for purchase of goods and services. Funds transfer or cash withdrawal from such PPIs are not permitted.

Guidelines for Special All-India Drive against fake registrations

In past few years Goods and Service Tax Department has identified and curbed various cases of Fake Firms, Bogus Invoicing, Firms in name of persons from economically weaker sections etc usually made to evade taxes and causing revenue loss to the Government. 

 

GST Officials has been taking help from various data analytics sources such as like BIFA, ADVAIT, NIC Prime, E-Way analytics, etc, as well as through human intelligence, Aadhar database, other local learning and the experience gained through the past detection and modus operandi alerts to detect these organizations and cases. But even after many detected cases there are still various organizations which are involved in such activities which is causing loss to Government in form of GST wrong input passing.

The Central Board Indirect Taxes & Customs, GST Policy Wing through its Instruction No. 01/2023-GST have proposed special drive for identifying these fake registrations from 16th May 2023 to 15th July 2023 to detect suspicious / fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.

 

The government proposes following action through this drive:

1. Suspension/Cancellation of Registration of Such Fake firms registered with GSTN.

2. Blocking of credit of such fake firms.

3. Demand and recovery of Input tax credit from recipient of such fake firms through details extracted from GSTR-1

4. Provisional attachment of property/Bank Account of Mastermind of Such Fake firms.

Link to detailed instruction regarding the Special drive is given below:

Guidlines for Special All-India Drive against Fake registrations

 

GST ISSUE ADVISORY ON BANK ACCOUNT VALIDATION

Many of us and our clients are receiving Bank validation mails and messages from Goods and Service Tax Department in past few days. These mail usually contains errors in Bank Account Validation which includes Account closure, Account PAN not linked, Wrong name in Bank Account etc.

On 24.04.2023 GSTN has issued advisory for the Taxpayers which says:

" GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account"

Link to full text is given below:

https://www.gst.gov.in/newsandupdates/read/579

As we are aware that linking of Bank Account is mandatory at GSTN and non linking can result in Suspension as well Cancellation of GST Registration. Readers are advised to kindly check the Bank Account linkage at their respective GSTN Login.

ITR 1 to ITR 4 for AY 2023-2024

 Income tax has today on 25.04.2023 has started e-filing of  ITR 1 to ITR 4 for AY 2023-2024. The much awaited release of schema was made on 11.04.2023 but e-filing of same was not started till today.

The taxpayers can login into Income Tax E-filing website and can upload their returns JSON file generated either through software provided by third parties or from Excel utility released by Income Tax.

Other Income Tax forms from ITR5 to ITR7 will be released shortly.

Last date for filing of return for Non-Audit taxpayers is 31st July, 2023. In case of delay in filing returns Late fees of Rs. 1000 to Rs. 10000 is leviable.

Link to relevant news of Income Tax Department is given below:

https://www.incometax.gov.in/iec/foportal//latest-news#206a6550-3d84-4d79-ba9a-ff5d34181d94

STEP BY STEP PROCESS TO RESOLVE MCA DSC NOT REGISTERED ERROR

Since the launch of MCA V3 portal, we professionals have been facing lot of issues in uploading forms and getting approval from ROC/CRC. The problem varies from User ID creation, dsc registration, Form Uploading errors, Payment errors, Certificate of Registration not available even after Company registration etc. 

One such errors which recently we were facing and many users are still facing is "DSC is not registered with XXXXXX on MCA portal". This error was usually coming at the time of uploading SPICE forms and even after re-registering dsc and adding roles in Business user login, the error was still there. The 

MCA helpdesk has still not come with any solution to this problem but one of the hacks to resolve the issue temporarily is shared below: 

 STEP 1- OPEN YOUR BROWSER IN INCOGNITO/PRIVATE/SAFE MODE (Also preferably dont open MCA website in normal mode on the same browser till the activity is completed) 

STEP 2- LOGIN to your MCA Business Account 

STEP 3- OPEN THE Dashboard of the relevant SPICE Form 

STEP 4- EDIT the relevant form 

STEP 5- SAVE and SUBMIT the form once again 

STEP 6- Download the FORM and attach the DSC of Directors and professional 

STEP 7- Than UPLOAD the form. 

Remember that all the activities are to be done in INCOGNITO/PRIVATE/SAFE MODE. 

 This will solve the issue till MCA software vendor comes with some permanent solution. This has helped us and will surely help to most of the professionals. #DSCISNOTREGISTERED 

#SPICEFORMUPLOADERROR #MCAHELPDESK #MCA21 #V3PORTAL #MCADSCERRORS

INCOME TAX RELIEF UNDER ECONOMIC PACKAGE PART -1 (COVID 19 ECONOMIC PACKAGE)

DETAILS OF ECONOMIC PACKAGE 2020 PART-1

Finance Minister Nirmala Sitharama on 13.05.2020 shared the first part of the most awaited Economic Package for boosting the corona troubled economy of India which had provisions for MSME sector of the country

This has come after Honorable PM Narender Modi, a day earlier has announced that a economic package of approximately 20,00,000.00 crores will be announced by Finance Minister in coming 3-4 days.

The Finance Minister along with MoS Anurag Thakur said that the "ATMANIRBHAR BHARAT" will be based on 5 pillar- Economy, Infrastructure, System, Vibrant Demography and Demand. The focus will be on Land, Labour, Liquidy and Law.

The  first part of the package is mainly focused on MSME sector and has been divided into Six major steps:

1. Rs. 3 Lakh collateral free loans to MSMEs. In which emergency credit line to MSMEs from Banks and NBFC's upto 20% of entire outstanding credit. This steps will help 45 lakh units to resume their Business activity.

2. Rs. 20000 crores subordinate Debt for Stressed MSMEs. This will help 2 lakhs MSME's

3. Rs. 50000 crores equity infusion for MSME's through Fund of Funds. A corpus of Rs. 10000 crore for Viable MSME through Funds of Fund.

4. Defintion of MSME's has been changed to increase the base of MSME's in the country.

New Definition of MSME's

Classification		Micro		Small		Medium
Manufacturing & Services		Investment Less than 1 crore and Turnover Less than 5 crore		Investment Less than 10 crore and Turnover Less than 50 crore		Investment Less than 20 crore and Turnover Less than 100 crore

5. Global Government tender upto Rs. 200 crores to be discontinued.

6. E-Market Linkage for MSMEs to act as replacement for Trade Fair and Exhibition. Government will clear all the dues within next 45 days.


Announcement for Employees:

1. Government will contribute the EPF for next 3 months for Employer as well Employee share. This will provide liquidy relief of Rs. 2500 cr to 3.67 lakhs establishments and for 72.22 Lakh employees.

2. EPF rate decreased to 10% from past 12% for next three years for both Employer and Employee share. This will infuse 6750 crores to these institutions.


Announcment for NBFC/HFC/MFI

1. Government will infuse 30000 crore under Special Liquidity scheme into NBFC/HFC/MFI through Investment in Investment Grade Debt Paper.

2.  Rs. 45000 crore partial credit Guarantee Scheme for NBFC's. First 20% loss will be borne by the Guarantor i.e. Government of India.


DISCOMs

Rs. 90000 crores liquidity injection for DISCOMs on their due receivables to increase their cash flow.


INCOME TAX RELIEFS

We have complied all the detailed Income Tax reliefs provided in First part in our other post. You can read it here INCOME TAX RELIEF.
Brief reliefs are given below:

1. Due date for ITR extended to 30th November 2020 from 31st July 2020 and 31st October 2020.

2. Due date of Tax Audit increased to 31st October, 2020 from 30th September 2020.

3. Non Salaried TDS and TCS will be reduced by 25% on rates applicable for payments made from 14-05-2020 to 31.03.2021.

4 Vivad pe Vishwas Scheme to be extended till 31st December 2020.

5. Assessments that are getting barred on 30th September 2020 extended to 31st December 2020 and that getting barred on 31st March 2021 to 30th September 2021.


OTHER RELIEFS

1. Extension of works of Government contracts by Six months for pending contracts.
2. Partial release of Bank Grantees to the extent of work completed by the Contractors.
3.Extension of due dates of Registration and Completion of Real Estate Projects under RERA by 3 months.