The interface of funds app Paytm.
| Photo Credit: REUTERS
The RBI on January 31 barred Paytm Payments Bank Ltd from accepting deposits or top-ups in any buyer account, pay as you go devices, wallets, and FASTags, amongst others after February 29, 2024.
The Reserve Bank’s motion in opposition to Paytm Payments Bank Ltd (PPBL) follows a complete system audit report and subsequent compliance validation report of the exterior auditors.
These experiences revealed persistent non-compliances and continued materials supervisory considerations within the financial institution, warranting additional supervisory motion, the RBI stated in a press release.
“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” it stated.
The central financial institution additional stated withdrawal or utilisation of balances by its clients from their accounts together with financial savings financial institution accounts, present accounts, pay as you go devices, FASTags, National Common Mobility Cards are to be permitted with none restrictions, as much as their obtainable stability.
The RBI in March 2022 had directed PPBL to cease onboarding new clients with speedy impact.
