RBI bars Paytm Payments Bank from accepting deposits after Feb 29


Mumbai, Jan 31 (IANS): The RBI has barred Paytm Payments Bank Ltd (PPBL) from further deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime.

The action has been taken after a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI said in a statement on Wednesday.

"Withdrawal or utilisation of balances by PPBL customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance, the RBI order states.

RBI bars Paytm Payments Bank to offer services after February 29

Apart from this, no other banking services like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024, the order states.

The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, according to the order.

Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter, the order further states.

 

  

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Comment on this article

  • Anilkumar, Manglore

    Wed, Jan 31 2024

    It will be a temporary measure. Knowing fully well that Paytm runs with BJP link, this barring chakker will be withdrawn as soon as some high level person intervenes.

    DisAgree Agree [4] Reply Report Abuse


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Title: RBI bars Paytm Payments Bank from accepting deposits after Feb 29



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