RBI Acts On Paytm Payments Bank, Bans Banking And Wallet Services After February 29

New Delhi, February 1 (TNA) The Reserve Bank of India has said that after February 29, Paytm Payments Bank Limited has been barred from accepting deposits or allowing credit transactions or top-ups in customer accounts or prepaid instruments like wallets and Fastag.

The Reserve Bank of India (RBI) on Wednesday prohibited Paytm Payments Bank Limited (PPBL) from accepting deposits or top-ups into any customer accounts, prepaid instruments, wallets and Fastag after February 29, 2024. This action of the Reserve Bank against Paytm Payments Bank Limited (PPBL) has been taken following a comprehensive system audit report and compliance verification report prepared by external auditors.

The RBI said in a statement that these reports reveal a persistent disregard for rules at the bank and hence further action is required. The Reserve Bank of India has said that after February 29, Paytm Payments Bank Limited has been barred from accepting deposits or allowing credit transactions or top-ups in customer accounts or prepaid instruments like wallets and Fastag.

RBI has also said that existing customers of Paytm Payments Bank will be able to use their money kept in a savings account, current account, prepaid instrument, Fastag, National or Common Mobility Card without any restriction.

The central bank further said that withdrawal or utilization of balance from their accounts including savings bank accounts, current accounts, prepaid instruments, Fastag, and National Common Mobility Card would be allowed to existing customers without any restrictions. RBI had directed PPBL in March 2022 to stop onboarding new customers with immediate effect.