RBI Directs Paytm Payments Bank To Cease Services Including Wallet, Post Feb 29

The Reserve Bank of India (RBI) slapped several operational limitations on Paytm Payments Bank Ltd. (PPBL) on January 31st. These restrictions include ceasing to accept new deposits and putting a halt on credit transactions starting from February 29. The decision comes in response to comprehensive system audit report and subsequent compliance validation report of the external auditors.

The audit reports revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI stated in a release.

The RBI stated that after February 29, 2024, no additional deposits, credit transactions, or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. However, exceptions will be made for any interest, cashbacks, or refunds that may be credited at any time.

Customers of the lender are allowed to withdraw or utilize their balances from various accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., without any limitations, up to the amount available in their accounts.

The central bank directed the termination of the Nodal Accounts held by One97 Communications Ltd and Paytm Payments Services Ltd. by no later than February 29, 2024, urging prompt action.

All pending transactions and nodal account settlements must be finalized by March 15, 2024, and no additional transactions will be allowed beyond that date, the release read.