Are you a Paytm Payments Bank customer? Here’s what you should know about RBI order against company

  • RBI also said the 'nodal accounts' of One97 Communications Ltd and Paytm Payments Bank Services are to be terminated at the earliest, in any case not later than February 29, 2024

Livemint
First Published31 Jan 2024
Paytm was also asked to remove Renu Satti as chief executive of Paytm Payments Bank following  RBI’s objections about her ability to lead a banking services firm. Photo: Mint
Paytm was also asked to remove Renu Satti as chief executive of Paytm Payments Bank following RBI’s objections about her ability to lead a banking services firm. Photo: Mint

Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to not onboard new customers and also not to undertake further deposits or credit transactions after February 29 this year.

Here are five facts that Paytm Payments Bank customers should know: 

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.

Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, upto their available balance.

No other banking services, other than those referred in (ii) above, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024.

The Nodal Accounts of One97 Communications Ltd and Paytm Payments Bank Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024.

Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter.

Earlier, Indian Highways Management Company (IHMCL), the arm of NHAI, had barred Paytm Payments Bank from issuing fresh FASTags after it found that Paytm Payments Bank was not following the parameters prescribed in the service-level agreement.

Gaurav Goel, Founder - Director, Fynocrat Technologies said, “As of February 29, the Reserve Bank of India (RBI) has taken measures against Paytm Payments Bank Limited (PPBL), restricting its ability to receive deposits or top-ups in customer accounts, including wallets and FASTags. The central bank has highlighted ongoing non-compliance and supervisory concerns, prompting apprehensions about the operational integrity of Paytm Payments Bank.

The RBI's move primarily targets Paytm's banking operations, allowing customers to still utilize Paytm for digital payments as long as their account remains connected to an external bank.

Currently, this appears to be a negative development for the company, which will undoubtedly affect its existing customers. However, we should await the company's official statement. This development is also expected to influence the short to medium-term stock price of Paytm (One 97 Communication).”

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