The RBI has barred Paytm Payments Bank Ltd (PPBL) from accepting with immediate effect further deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29. The exceptions are interest, cashbacks, or refunds which may be credited anytime.
The RBI said its Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.

Accordingly, the RBI has said it will not allow any further deposits, credit transactions or top ups in any account whatsoever. However, customers can withdraw or utilise without any restrictions balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments and FASTags. It has also asked for the termination of One97 Communications Ltd and Paytm Payments Services.

Courtesy: The Tribune India:  1st  Feb , 2024