Paytm Payments Bank has reassured its prospects that their existing balances are protected, following the Reserve Bank of India’s (RBI) directive proscribing the financial institution from accepting new deposits or permitting credit score transactions after February 29, 2024.
In an electronic mail and textual content message to prospects, the financial institution acknowledged that whereas new deposits or credit score transactions is not going to be permitted after the desired date, there is no such thing as a restriction on withdrawing cash from existing balances.
“Your money is safe with the bank,” the Paytm Payments Bank stated.
The central financial institution’s motion follows a complete system audit report and compliance validation by exterior auditors. Starting February 29, 2024, Paytm Payments Bank Limited (PPBL) is prohibited from accepting new deposits, credit score transactions, or top-ups in buyer accounts, pay as you go devices, wallets, FASTags, and extra.
Customers are allowed to withdraw or use balances with out restrictions, however different banking providers like fund transfers and UPI services shall be discontinued. The nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd. have to be terminated by February 29, 2024.
Settlement of all pipeline transactions and nodal accounts initiated on or earlier than February 29, 2024, must be accomplished by March 15, 2024. The RBI had beforehand directed PPBL to cease onboarding new prospects in March 2022.
“Withdrawal or utilisation of balances by its customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. is permitted without any restrictions up to their available balance. No other banking services like fund transfers (irrespective of the name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facilities should be provided by the bank after February 29, 2024. 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 February 29, 2024,” the RBI stated.
(With company inputs)
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