The RBI on Wednesday prohibited Paytm Payments Bank Ltd. from taking any more deposits or top-ups in wallets, prepaid cards, client accounts, or FASTags after February 29, 2024.
The Reserve Bank’s action against Paytm Payments Bank Ltd (PPBL) is the result of an external auditor’s compliance validation report and a thorough system audit report.
The RBI stated in a statement that these findings showed ongoing serious supervisory concerns and chronic non-compliances in the bank, necessitating additional supervisory action. “After February 29, 2024, no additional deposits, credit transactions, or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., with the exception of any interest, cashbacks, or refunds that may be credited at any time,” the statement stated.
The central bank further stated that, subject to their available balance, clients may withdraw or use funds from any of their accounts, including savings bank accounts, current accounts, prepaid cards, FASTags, and National Common Mobility Cards, without any limitations. In March 2022, the RBI ordered PPBL to cease accepting new clients immediately.
