RBI Bans Paytm Bank Accounts from New Customers Onboarding
RBI Bans Paytm Payment Bank From Onboarding Customers due to non-compliance issues
The Reserve Bank of India (RBI) has issued a directive restricting Paytm Payments Bank Account/Wallet from accepting new deposits or allowing credit transactions after February 29, 2024.
Please note that you will not be able to deposit or add money to your Paytm Payments Bank Account/Wallet after Feb 29, 2024. However, there is no restriction on withdrawal of money from your existing balance even after Feb 29, 2024.
The directive does not impact your existing balances and your money is safe with the Bank.
The Reserve Bank Of India (RBI) has taken this action against Paytm Payment bank, which is an associate of the listed entity one 97 Communication, in response to persistent non-compliances and continued material supervisory concerns in the bank. Here’s how it will impact customers.
In Press Release dated March 11, 2022, the Reserve Bank of India, in exercise of its power under section 35A of the Banking Regulation Act,1949, had directed Paytm Payments Bank Ltd (PPBL) to stop onboarding of new customers with immediate effect.
2. The 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 action.
3. Accordingly, in exercise of its power under section 35A of Banking Regulation Act, 1949 and all other power enabling it in that behalf, the Reserve Bank of India, has today directed PPBL as below:
I. No further deposit or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after february 29, 2024.
ii. Withdrawal or utilisation of balances by its 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, upto their available balance.
iii. No other banking services, other than those referred in (ii) above, like fund transfers (irrespectiveof name and nature of services like AEPS, IMPS, etc), BBPOU and UPI facility should be provided by the bank after February 29, 2024.
iv. The Nodal Accounts of One 97 Communications Ltd and Paytm Payments Bank Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024.
v. 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 official statement added that the nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd should also be terminated at the earliest, and no later then 29 February, 2024.
Now you can check official link https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57224
