The action against Paytm Payments Bank has been taken after an audit.
The Reserve Bank of India (RBI) on Wednesday barred Paytm Payments Bank (PPB) from onboarding new customers and accepting deposits and top-ups in any customer accounts, wallets and FASTags from February 29, 2024. The action has been taken after a comprehensive audit, which found non-compliances. However, the central bank said in the notification posted on its website that certain services will be allowed. Important among them is the facility to transfer wallet balance to your savings account.
Here's a look at services that will be allowed:
- According to the RBI website, withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags and National Common Mobility Cards will be permitted without any restrictions, up to their available balance.
- It also said that settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29) shall be completed by March 15 and no further transactions shall be permitted thereafter.
The action comes nearly two years after the RBI directed Paytm Payments Bank to stop new customers from signing up.
Invoking its power under Section 35A of the Banking Regulation Act, 1949, the central bank had asked an audit form to be appointed for a detailed review.
This March 2022 action was taken on the basis of certain material supervisory concerns observed in the bank.