By The Reserve Bank of India (RBI) has made a pivotal decision affecting the operations of Paytm Payments Bank Limited (PPBL), as per reports from India Today and The New Indian Express. Following concerns over “persistent non-compliance,” the RBI has directed PPBL to cease accepting deposits or top-ups in any customer account, including wallets and FASTags, effective from February 29, 2024.
This directive follows a comprehensive system audit and subsequent compliance validation reports from external auditors that highlighted ongoing issues and supervisory concerns within PPBL. The RBI’s stringent measures reflect a major regulatory intervention to address these concerns and ensure the bank’s compliance with regulatory standards.
For PPBL account holders, this means significant changes in how they can use their accounts. From February 29, 2024, PPBL is restricted from engaging in any new credit transactions or facilitating account top-ups. However, customers can continue to withdraw or utilize the balances in their accounts, such as savings and current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, up to the available balance.
Additionally, PPBL will be limited in providing banking services beyond withdrawals and account utilization. This includes a discontinuation of services like fund transfers (including AEPS, IMPS, etc.), BBPOU, and UPI facilities. Any interest, cashbacks, or refunds can still be credited to customer accounts at any time.
PPBL has responded to the RBI’s directive, stating its commitment to addressing the concerns and complying with the RBI’s directions as swiftly as possible. This development marks a critical juncture for PPBL, underscoring the importance of regulatory compliance in the digital payment ecosystem.
