shot-button
Ganesh Chaturthi Ganesh Chaturthi
Home > News > India News > Article > RBI directs Paytm Payments Bank not to onboard new customers after February 29

RBI directs Paytm Payments Bank not to onboard new customers after February 29

Updated on: 31 January,2024 07:56 PM IST  |  New Delhi
ANI |

Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to not onboard new customers and also not to undertake further deposits or credit transactions after February 29 this year

RBI directs Paytm Payments Bank not to onboard new customers after February 29

File photo

Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to not onboard new customers and also not to undertake further deposits or credit transactions after February 29 this year.


In a press release dated March 11, 2022, the Reserve Bank of India, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, had directed Paytm Payments Bank Ltd (PPBL) to stop onboarding new customers with immediate effect.


The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.


Accordingly, in exercise of its powers under Section 35A of Banking Regulation Act, 1949, and all other powers enabling it in that behalf, the Reserve Bank of India, has today directed PPBL to no allow further deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, other than any interest, cashbacks, or refunds which may be credited anytime.

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. are to be permitted without any restrictions, up to their available balance, the country's top bank said.

No other banking services, other than those referred in (ii) above, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29 this year, it said.

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, it said.

Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, this year) shall be completed by March 15, this year, and no further transactions shall be permitted thereafter. 

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!

Register for FREE
to continue reading !

This is not a paywall.
However, your registration helps us understand your preferences better and enables us to provide insightful and credible journalism for all our readers.

Mid-Day Web Stories

Mid-Day Web Stories

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK