RBI Stops Paytm Payments Bank From Accepting Deposits After Feb 29

Today, January 31, the Reserve Bank of India (RBI) placed restrictions on Paytm Payments Bank Ltd (PPBL). Starting from February 29, PPBL is not allowed to accept deposits or top-ups in any customer account, wallets, and FASTags.

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New Delhi: The Reserve Bank of India (RBI) has announced that starting from February 29, 2024, Paytm Payments Bank Ltd (PPBL) won't be allowed to accept deposits or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more.

Reason Behind RBI's Action

The RBI's decision comes after a thorough examination of a system audit report and a compliance validation report conducted by external auditors. These reports highlighted ongoing issues where PPBL did not comply with regulations, raising concerns that needed further attention, according to the RBI.

What Changes After February 29?

After the specified date, no new deposits, credit transactions, or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. The only exceptions are for interest, cashback, or refunds, which may still be credited at any time.

Withdrawal And Utilization

Customers of PPBL are allowed to withdraw or use the balances in their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, without any restrictions. They can do this up to the available balance in their accounts.

This action follows the RBI's earlier directive in March 2022, instructing PPBL to stop onboarding new customers immediately.

(With PTI input)