After February 29, the RBI prohibits Paytm Payments Bank from taking in new deposits

After February 29, the RBI prohibits Paytm Payments Bank from taking in new deposits

After February 29, the RBI prohibits Paytm Payments Bank from taking in new deposits

According to the RBI, the audit report shows ongoing major supervisory issues at the bank and continuous non-compliance.

Services offered to the bank's current clients won't be impacted

On January 31, the Reserve Bank of India (RBI) placed significant operational limitations on Paytm Payments Bank, prohibiting it from taking on new deposits and extending loans beyond February 29.

RBI has barred Paytm Payments Bank from accepting new clients on March 11.

The central bank said that continuous non-compliance and ongoing major supervisory issues at the bank necessitated additional supervisory action. These findings were found in a thorough system audit report and a subsequent compliance verification report by external auditors.

After February 29, 2024, no credit, deposit, or top-up—aside from interest, cashback, or refunds—will be permitted in any customer account, prepaid device, wallet, Fastag, NCMC card, etc., and will never be credited. is feasible. stated RBI.

RBI did, however, clarify that there would be no limitations on the lender's clients' ability to withdraw or use the amount from any of their accounts, comprising savings bank accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, etc. Amount Available.