Reserve Bank of India (RBI) stops Paytm payments bank from accepting deposits after February 29

The Reserve Bank of India on Wednesday banned Paytm Payments Bank Ltd from accepting deposits or recharges from any customer account, prepaid instruments, wallets, FASTags, etc. after February 29, 2024.

The Reserve Bank’s action against Paytm Payments Bank Ltd (PPBL) follows a comprehensive system audit report and subsequent compliance verification report by the external auditor.

The RBI said in a statement that the reports revealed persistent irregularities and ongoing significant supervisory issues at the bank, requiring further supervisory action. “No further deposits, credit transactions or recharges will be allowed in any customer account, prepaid instrument, wallet, FASTag, NCMC card etc. after February 29, 2024 but any interest, cashback or refund can be credited into the account at any time. , ” it says.

The central bank further said that customers will be allowed to withdraw or use balances from savings bank accounts, current accounts, prepaid instruments, FASTags, national universal mobile cards, etc., up to the available balance. The Reserve Bank of India (RBI) in March 2022 directed PPBL to stop admitting new customers with immediate effect.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)