RBI stops Paytm Payments Bank from accepting deposits after Feb 29
The RBI has barred Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024.
The Reserve Bank of India (RBI) has barred Payments Bank Ltd from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others, after February 29, 2024.
The Reserve Bank's action against Paytm Payments Bank Ltd follows a comprehensive system audit report and a subsequent compliance validation report of external auditors.
These reports revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI said in a statement.
"No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashback, or refunds which may be credited anytime," it said.
The central bank also said withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards are to be permitted without any restrictions, up to their available balance.
The RBI in March 2022 had directed Paytm Payments Bank Ltd to stop onboarding new customers with immediate effect.
Edited by Swetha Kannan