RBI bars Paytm Payments Bank from offering THESE services from Feb 29; details inside
PTC News Desk: The Reserve Bank of India has prohibited Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions, or top-ups, in customer accounts or prepaid instruments linked to those accounts following February 29.
Customers can, however, continue to use balances in their accounts, including savings and current accounts, "without restriction (and) up to their available" limit, according to the Reserve Bank order issued on Wednesday.
The RBI's order cited "persistent non-compliance and continued material supervisory concerns in the bank" that were identified following a comprehensive audit of its systems by external parties.
It follows a March 2022 order directing Paytm Payments Bank Ltd, or PBBL, to cease accepting new customers "with immediate effect".
This order is understood not to affect Paytm's Unified Payment Interface, or UPI, arm.
Essentially, the RBI action is directed at Paytm's banking operations, which means that customers can continue to use Paytm as a digital payment option as long as their account is linked to an external bank.
-
