New Delhi: In response to supervisory concerns, the Reserve Bank of India (RBI) took action against Paytm Payments Bank, instructing them not to onboard new customers. Back in 2022, the RBI had already directed the bank to appoint an Income Tax audit firm to conduct a thorough System Audit of its IT system due to worries about non-compliance.
RBI’s Latest Action
The latest action from the RBI is a result of a Comprehensive System Audit report and a compliance validation report by external auditors, revealing persistent non-compliance. In exercising its powers under the Banking Regulation Act, the RBI has restricted Paytm Payments Bank from offering certain services to customers.
Impact On Customers After February 29
– No New Deposits
After February 29, customers won’t be able to make further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards.
– Withdrawal Allowed
Customers can still use the money in their accounts for withdrawals. However, no new deposits will be accepted after the specified date.
– Limitations On Services
Services like fund transfers and UPI facilities will not be available to customers after February 29.
This action follows the RBI’s earlier directive in March 2022, instructing PPBL to stop onboarding new customers immediately.