- After RBI’s actions due to “persistent non-compliance,” Paytm Payments Bank faces restrictions from February 29, impacting new users, deposits, and transactions.
- Post-Feb 29, Paytm Payments Bank won’t onboard new users, accept fresh deposits, or allow debit and credit transactions. Withdrawals remain unrestricted.
- RBI mandates the discontinuation of services like fund transfers, bill payments, and UPI facilities after February 29, while nodal accounts associated with One97 Communications Ltd and Paytm Payments Services Ltd should be terminated.
Paytm Payments Bank encounters operational challenges as the Reserve Bank of India (RBI) imposes restrictions, effective from February 29, following “persistent non-compliance.” The limitations include a halt on onboarding new users, accepting fresh deposits, and prohibiting debit and credit transactions. Users will still have the ability to withdraw funds without restrictions.
The RBI directive further necessitates the cessation of various services, such as fund transfers, bill payments, and UPI facilities, marking a significant impact on the functionalities offered by Paytm Payments Bank. Additionally, the termination of nodal accounts associated with One97 Communications Ltd and Paytm Payments Services Ltd is mandated by the central bank.
These restrictions, disclosed in an RBI audit report, underscore concerns over compliance issues and supervisory challenges within Paytm Payments Bank, a digital banking service authorized by the RBI since 2017.
