The Reserve Bank of India (RBI) has banned the leading digital bank Paytm Payment Bank from accepting any deposits from February 29. The central bank said that Paytm Payment Bank (PPBL) will neither be allowed to accept any deposits nor will it be able to accept any prepaid bill payment, top up or deposit in wallet or FASTags.
RBI said that Paytm Payment Bank will not be allowed to do any credit transactions including wallet.
However, account holders or Paytm users need not worry about this. Because the Central Bank (RBI) has said that there will be no restriction of any kind for Paytm customers to withdraw or use their remaining balance. Once the remaining balance is exhausted, users will not be able to use it.
Why did RBI take this step?
According to a Reuters report, RBI has barred Paytm Payments Bank from accepting new deposit and credit transactions on its services due to non-compliance with regulations and supervisory concerns. RBI said in the statement that this order has been issued after finding flaws in the audit reports.
You will get cashback and refund amount
RBI said that after February 29, 2024, no new transaction or top up will be possible through Paytm Payment Bank. However, interest, cashback or refund transactions can be done through this.
RBI further said that Paytm Payment Bank will not be allowed to transfer funds through any platform including India’s famous transaction system like UPI.
RBI had given instructions not to add new customers
Let us tell you that even before this, in March 2022, RBI had directed Paytm Payment Bank not to add new customers with immediate effect.
One97 Communications Ltd and Paytm Payments Bank fined
RBI said that the nodal accounts of One97 Communications Ltd and its subsidiary company Paytm Payments Services Ltd are to be closed as soon as possible. This deadline cannot be extended beyond February 29, 2024 under any circumstances. Let us tell you that One97 Communications Ltd has 49 percent stake in Paytm.
RBI has directed Paytm Payment Bank to settle all transactions which are currently pending, i.e. pipeline transactions and in addition, no-deal accounts, by March 15, 2024. After this no permission for any transaction will be given.
