RBI Cracks Whip on Paytm Payment Bank, Asks To Stop Deposits or Credit Transactions and Top Ups after 29th February
Moneylife Digital Team 02 February 2024
Coming down heavily on Paytm Payment Bank over persistent non-compliance and continued material supervisory concerns, Reserve Bank of India (RBI) has asked it to stop deposits, credit transactions and top-ups after 29 February 2024, among other restrictions. RBI also asked Paytm Payment Bank to terminate the nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd as soon as possible.
 
In a release, RBI says on 11 March 2022 had directed Paytm Payments Bank to stop onboarding of new customers. "The comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in Paytm Payments Bank, warranting further supervisory action."
 
Here are the directions issued by RBI to Paytm Payment Bank...
 
1. No further deposits or, credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, and national common mobility cards (NCMC) after 29 February 2024, other than any interest, cashback, or refunds which may be credited anytime.
 
2. Withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and NCMC, are to be permitted without any restrictions upto their available balance.
 
3. No other banking services, other than those referred to in (2) above, like fund transfers (irrespective of name and nature of services like Aadhaar enabled payment system (AePS), and immediate payment service-IMPS), Bharat bill payment operating unit (BBPOU) and unified payments interface (UPI) facility should be provided by the bank after 29 February 2024.
 
4. The nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than 29 February 2024.
 
5. Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before 29 February 2024) shall be completed by 15 March 2024 and no further transactions shall be permitted thereafter.
 
In October last year, RBI slapped a Rs5.39-crore fine on Paytm Payments Bank for not complying with its guidelines related to know-your-customer (KYC) norms and not reporting incidents of cyber security breaches in time.
Comments
thomay779
6 months ago
The Chinese will pull out all customer data within two days
1957arunsharma
6 months ago
Is it mean all customers on paytm become non operative after 29/2/024?
baalkee
6 months ago
RBI should not just give directions. It should immediately post a High power team of auditors to take control of its accounts so that Sahara kind of situation does not develop n proof of deposits and other data is not tampered with.
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