RBI takes action against Paytm Payments Bank under Section 35A

RBI takes action against Paytm Payments Bank under Section 35A - InvestNagar.com

RBI takes action against Paytm Payments Bank under Section 35A InvestNagar.com



The Reserve Bank of India (RBI) has imposed additional restrictions on Paytm Payments Bank Ltd (PPBL) due to persistent non-compliances, as revealed in a report by external auditors. 


Following the earlier directive in March 2022 that halted new customer onboarding, the latest restrictions prohibit Paytm Payments Bank from accepting fresh deposits and conducting credit transactions across its services. The central bank specified that no further deposits or credit transactions will be allowed in customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29, 2024. However, customers are permitted to withdraw or utilize their balances without restrictions. Additionally, the RBI directed the termination of Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. by February 29, 2024, and the completion of settlement for all pipeline transactions and nodal accounts initiated on or before February 29, 2024, by March 15, 2024, with no further transactions allowed thereafter. This regulatory action underscores the RBI's commitment to addressing supervisory concerns and ensuring compliance within the banking sector.

RBI directs Paytm Payments Bank to stop onboarding of new customers with immediate effect.

RBI takes action against Paytm Payments Bank under Section 35A of Banking Regulation Act, 1948

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