Paytm can’t accept deposits after Feb 29
RBI cites ‘persistent non-compliances’ and ‘material supervisory concerns’ revealed in audits
Trouble for Paytm
- Existing customers can freely withdraw or utilize their account balances
- Since March 2022, Paytm has been prohibited from onboarding new customers
- This action raises questions about the bank’s future
Mumbai: The RBI on Wednesday barred Paytm Payments Bank Ltd from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024.
The Reserve Bank’s action against Paytm Payments Bank Ltd (PPBL) follows a comprehensive system audit report and subsequent compliance validation report of the external auditors. These reports revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action, the RBI said in a statement.
“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” it said.
