Explained: How RBI restrictions on Paytm Payments Bank will impact customers
Business | February 05, 2024 10:44 ISTThe central bank's directive restricts Paytm Payments Bank from accepting deposits or top-ups after February 29.
The central bank's directive restricts Paytm Payments Bank from accepting deposits or top-ups after February 29.
The RBI had raised concerns about the creation of several accounts at Paytm Payments Bank without proper identification, suspecting potential money laundering activities.
Paytm Payments Bank: The central bank has ordered Paytm Payments Bank Ltd to halt most of its business including taking further deposits, conducting credit transactions and carrying out top-ups on any customer accounts, prepaid instruments, wallets, and cards for paying road tolls after Feb 29
The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement.
Paytm Payments Bank: Sources said RBI in 2021 detected serious KYC Anti Money Laundering violations and the bank was directed to address these deficiencies. However, they continued to persist. The compliances submitted by the bank were found to be incomplete and false on many occasions.
The RBI imposed restrictions, prohibiting the bank from accepting new deposits or conducting credit transactions after February 29.
Vijay Shekhar Sharma stated in a blog post that Paytm's app will continue to function normally beyond February 29 for existing users to withdraw funds.
Paytm Payments Bank Limited is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more from February 29 onwards.
Paytm faces a directive from the RBI to stop major payment services, causing concerns for FASTag users; while services continue normally until February 29, Paytm is working on solutions for a seamless customer experience. Here are the details.
Paytm Payments Bank is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more after February 29, 2024.
The RBI said that customers are permitted to withdraw or utilise balances from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards.
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