The Reserve Bank of India (RBI) today announced that with effect from February 29, 2024, Paytm Payments Bank Ltd (PPBL) won’t be allowed to accept deposits or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more except interest, cashbacks, or refunds which may be credited anytime.
The RBI’s decision comes after a thorough examination of a system audit report and a compliance validation report conducted by external auditors. The reports highlighted PPBL’s persistent non-compliance with regulations.
The RBI, however, clarified that the withdrawal or utilisation of balances by the lender’s customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance.
“Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance,” said RBI in a statement
RBI directive mandates the completion of all pending transactions and nodal account settlements (related to transactions initiated on or before February 29, 2024) by March 15, 2024. Subsequent transactions beyond this date will not be permitted.
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