Finance & Business

RBI action against Paytm Payments Bank Ltd under section 35A

RBI action against Paytm Payments Bank Ltd
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RBI action against Paytm Payments Bank Ltd: RBI has taken big action against Paytm Payments Bank Ltd. PPBL will not be able to provide banking services after 29th February.

That means now it will not be able to create new customers. RBI has taken this action against Paytm Payments Bank under Section 35A of the Banking Regulation Act-1949.

Paytm company, which provides digital payment and financial services, has been banned from adding new customers. RBI action against Paytm Payments Bank Ltd

It has been said that this decision is being implemented with immediate effect. RBI has given this order on Wednesday.

RBI action against Paytm Payments Bank Ltd: Deposit-topup not be accepted

Many types of restrictions will be imposed by RBI on Paytm Payment Bank on 29 February 2024. These restrictions are given as follows.

  • Cannot add new customers
  • Customer will not have account in Paytm Payments Bank
  • There will be no wallet facility.
  • Deposits/top-ups will not be accepted in FASTag
  • It has been clarified by RBI that the amount already deposited in savings bank account, current account and Fastag among others can be withdrawn or used without any restriction.

Customers of the Bank will be permitted to withdraw or utilize balance from their accounts including Savings Account, Current Account, Prepaid Instruments, FASTag, National Common Mobility Card (NCMC) without any restrictions.

RBI action against Paytm Payments Bank Ltd, But Why?

RBI action against Paytm Payments Bank Ltd. RBI has made disclosure regarding this action taken on Paytm Payment Bank. The reason behind this action is said to be Paytm Payment Bank’s plan to reduce small postpaid loans.

RBI has said that following an audit report and reports verified by external auditors, non-compliance and material supervisory concerns have been highlighted in Paytm’s banking services. Amidst all this this decision has been taken.

Customers will be able to withdraw their money

The central bank instructed not to add any new customers at present. Also, the customer has been given complete freedom to withdraw money from his account.

These include AEPS, IMPS, BBPOU and UPI facilities. The bank has been given time till March 15 to settle all transactions and nodal accounts. After this no transaction will be accepted.

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