JOIN OUR WHATSAPP CHANNEL
Paytm Ban: What are the services that you will not be able to use after RBI Restrictions? EXPLAINED
The RBI has mandated that, as of February 29, 2024, Paytm Payments Bank stop taking fresh deposits into its popular wallets or accounts.
-
Paytm Payments Bank is one of the biggest beneficiary bank in UPI ecosystem
-
RBI has ordered Paytm Payments Bank to stop accepting fresh deposit from February 29
On January 31, the Reserve Bank of India (RBI) placed restrictions on Paytm Payments Bank Ltd (PPBL) in response to an external auditor's compliance validation report and system audit report. Section 35A of the Banking Regulation Act, 1949 prohibits PPBL from taking deposits or top-ups in any client account, wallet, or FASTag after February 29.
Additionally, Paytm Payments Bank is not allowed to provide supplementary banking services like fund transfers regardless of the kind or name of services such as AEPS, IMPS, BBPOU, and UPI.
The bank's chief general manager 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."
Can people still withdraw money from their available amount?
Paytm Payments Bank clients can easily withdraw and use their available amounts, the central bank assures.
Until February 29, 2024, the RBI confirms that there are no limitations on using balances in savings accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, etc. However, after that day, no more deposits, credits, or top-ups will be accepted.
Services that will be restricted
- FASTags
- NCMC Cards, which include Fuel, Food, Metro, Bus, and Online shopping. It includes major platforms like ZARA, DMRC, Zomato,
- Swiggy, and others.
- Fund Transfers
- IMPS, UPI, AEPS, and BBPOU
The RBI has stated that the Nodal Accounts associated with Paytm Payments Services Ltd. and One97 Communications Ltd. will be quickly terminated, with a deadline of February 29, 2024.
By March 15, 2024, all nodal accounts and outstanding transactions that were started on or before February 29, 2024, shall be settled. After this date, no more transactions will be allowed. The primary target of the RBI's move is Paytm's banking operations. Customers who have accounts linked to other banks, however, can still utilize Paytm for digital payments.
According to the central bank, a Comprehensive System Audit report and the external auditors' subsequent compliance validation report demonstrated ongoing material supervisory concerns and chronic non-compliance in the bank, necessitating additional supervisory action.
Until further notice from the RBI, Paytm Payments Bank must abide by these restrictions. Clients are asked to keep themselves informed about these developments and modify their financial transactions accordingly.
ALSO READ: Facebook turns 20: Years of friendship, likes, and memorable moments
Know more about Paytm
Latest Articles
