Reserve Bank of India (RBI) bars Paytm Payments Bank from accepting any deposits after 29 February 2024. The central bank took the action against Paytm Payment Bank on 31 January 2024. There will be certain restrictions on the bank’s activities. It will not be allowed to add new customers after 29 January 2024. The bank took action after the audit reports and subsequent compliance validation reports of external auditors. This RBI action on Paytm payments Bank making users worry about the available funds in their account. We will share details about the RBI’s action and Paytm’s current situation below.
RBI action on Paytm Payments Bank restricts From Accepting Any Further Deposits
Reserve Bank Of India bars the Paytm Payment bank from accepting any deposits, making new customers, top-up wallets, and FASTags from 1 March 2024. This means that the Paytm Payment Bank will have 29 February 2024 as the last date for the operation of all such activities. However, interest, cashbacks, or refunds will still be credited after 29 Feb.
It will not only bar the above-mentioned activities, no one transaction of any form will be allowed through the platform. It also includes services like BBPOU and UPI as well. RBI asks to stop all the major activities of the bank on the first. It will include the Nodal Account of One97 Communications to proceed with the settlement.
Many customers are panicking about the funds available in their accounts. However, there is no need to panic yet. All the customers will be able to withdraw their balances from the current account, savings bank account, prepaid instruments, FASTags, and National Common Mobility Cards. There won’t be any restriction upon it.
RBI gave extra time to the Paytm Payment Bank for the settlement of all the pipeline transactions and nodal accounts. The central bank asks the Paytm Payment Bank to settle all the transactions by 15 March 2024. After the date, no transaction will be able to take place through the bank. RBI gave the warning to the bank earlier also. In March 2022, the central bank asked Paytm Payment Bank Limited to stop onboarding new customers.
Paytm Payments Bank will not be able to do any transaction further after 29 February 2024. RBI barred the Paytm Payment Bank from adding new customers. The reason behind this is said to be persistent non-compliance and continued material supervisory concerns in the bank. We will provide more updates about the bank shortly. Paytm Payment Bank Limited has been working for many years in the industry. However, RBI always works for the benefit of the country.