June 16, 2024

Paytm Payments Bank Can’t Offer Services, Including Wallet, After Feb 29: RBI

Paytm Payments Bank Can’t Offer Services, Including Wallet, After Feb 29: RBI


In March 2022 the RBI had ordered Paytm Payments Bank Ltd to stop on-boarding new customers “with immediate effect”.

Paytm Payments Bank Can’t Offer Services, Including Wallet, After Feb 29: RBI

In March 2022 the RBI had ordered Paytm Payments Bank Ltd to stop on-boarding new customers “with immediate effect”.

New Delhi: The Reserve Bank of India on Wednesday barred Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions, or top-ups, in customer accounts or prepaid instruments – such as wallets and FASTags – linked to those accounts, after February 29.

Customers can, however, continue to utilise balances from their accounts, including savings and current “without restriction (and) up to their available” limit, the Reserve Bank order said.

In addition, the nodal accounts of Paytm’s parent company, One97 Communications Ltd., and Paytm Payments Bank Ltd., or PBBL, have been terminated by the central bank.

The RBI’s order cited “persistent non-compliances and continued material supervisory concerns in the bank” that were flagged after a comprehensive audit of its systems by external parties.

It is understood this order does not affect Paytm’s Unified Payment Interface, or UPI, arm.

Essentially the RBI action is against the banking operations of Paytm, meaning customers can continue to use Paytm as a digital payment option so long as their account is linked to an external bank.

In December, One97 Communication laid off hundreds of employees across verticals after it began using AI, or Artificial Intelligence, to automate certain processes in a bid to up cost-cutting.NDTV

JKNEWS NATION

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