RBI bans Paytm Payment Bank: The RBI has taken action against One 97 Communications’ affiliate, Paytm Payments Bank, due to ongoing non-compliances and supervisory concerns. Customers may expect a service disruption as the bank takes corrective action to resolve issues and improve regulatory compliance.”
RBI bans Paytm Payments Bank: Unexpectedly, as of February 29, 2024, the bank will cease to accept deposits, top-ups, or transactions in customer accounts, prepaid cards, wallets, Fastags, and other services. Customers are advised to take note of these changes and plan their transactions accordingly.”
On Wednesday, the Reserve Bank of India (RBI) ordered the bank to cease accepting new clients, citing ongoing substantial supervisory concerns and non-compliances.
The official declaration stipulates that One97 Communications Ltd. and Paytm Payments Services Ltd. must cancel their nodal accounts by February 29, 2024, at the latest.
RBI bans Paytm Payment Bank: All pipeline transactions and nodal accounts have to be cleared by March 15, 2024, in accordance with the directive. After this date, no further transactions will be allowed. In view of these regulatory changes, Paytm Payments Bank users are advised to ensure prompt settlement and make appropriate plans.”
Why did the RBI take measures to restrict the business operations of Paytm Payments Bank?
The comprehensive system audit report and the external auditors’ subsequent confirmation of compliance led to the central bank’s decision to take action against Paytm.
In 2022, the RBI expressed concerns about non-compliance and ordered the bank to hire an income tax audit firm to conduct a thorough system audit of its IT system. PPBL immediately stopped onboarding new clients as a result of this mandate.
How will customers be impacted by the regulatory actions taken by the RBI against Paytm Payments Bank?
With effect from February 29, consumers would not be able to credit, top up, or make new deposits into any customer accounts, prepaid cards, wallets, Fastags, or national common mobility cards. RBI ban Paytm Payment Bank. Customers must be aware of the changes and modify their transactions in accordance with this regulatory requirement.
After that day, the bank will no longer take new deposits; however, clients can still withdraw money from their accounts with the money that is still in them.
