Paytm Bank and Wallet Services Shut Down Post 29th February: RBI Imposes Immediate Ban Due to Continuous Violations
The Reserve Bank of India (RBI) has temporarily prohibited Paytm Payments Bank (PPBL) from onboarding new customers with immediate effect. This directive was announced by the central bank on January 31, 2024. Paytm Payments Bank has undertaken this action against the backdrop of banking regulations under the Banking Regulation Act for not adhering to the rules.
Banking Services Cannot Be Provided After February 29 by Paytm Payments Bank
Along with this, RBI has also instructed the company to stop adding funds to existing customers’ accounts after February 29. Following this order, no credit/deposit transactions will take place in Paytm Payment Bank, and after February 29, Paytm Payments Bank will not be able to provide banking services.
RBI Takes Action Due to Non-Compliance of Regulations
The central bank has stated that it became known through system audit reports and concurrent compliance verification reports that the company has violated the norms of continuous compliance.
Current Customers of Paytm Payments Bank Can Utilize Services
However, RBI has clarified that current customers of Paytm Payments Bank can withdraw their available balance and utilize it. Subsequently, whether it be savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., balances in such accounts can be withdrawn or utilized without any restrictions.
