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RBI bars Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions after 29 February 2024.

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RBI bars Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions after 29 February 2024.

RBI bars Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions after 29 February 2024.

RBI bars Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions after 29 February 2024.

In a new development, the Reserve Bank of India on Wednesday terminates Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions, or top-ups, in customer accounts or prepaid instruments such as wallets and FASTags linked to those accounts, after February 29.

However, Customers can continue to utilise balances from their accounts, including savings and current “without restriction (and) up to their available” limit.

In addition, the nodal accounts of Paytm’s parent company, One97 Communications Ltd., and Paytm Payments Bank Ltd., or PBBL, have been terminated by the central bank.

The RBI’s order cited “persistent non-compliances and continued material supervisory concerns in the bank” that were flagged after a comprehensive audit of its systems by external parties.

It is understood this order does not affect Paytm’s Unified Payment Interface, or UPI, arm.

The RBI action is against the banking operations of Paytm, meaning customers can continue to use Paytm as a digital payment option so long as their account is linked to an external bank.

Infact In March 2022 the RBI had ordered Paytm Payments Bank Ltd to stop on-boarding new customers “with immediate effect”.

News Edit K.V.Raman

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