
Paytm Payments Bank, as per the directive from the Reserve Bank of India (RBI), will cease offering services such as accepting deposits and processing credit transactions from March 15. The RBI imposed restrictions on the bank on January 31, citing serious violations of regulations. The Bombay Stock Exchange (BSE) has also issued guidelines for investors who exclusively use the bank for stock trading.
The RBI ordered the closure of Paytm Payments Bank due to non-compliance issues and concerns within the bank. A report revealed that numerous accounts were opened without proper identification, raising concerns about potential involvement in illegal activities like money laundering. This information was shared with authorities including the Enforcement Directorate (ED) and the Prime Minister’s Office.
In response, Revenue Secretary Sanjay Malhotra stated that the ED will investigate Paytm Payments Bank, which is expected to temporarily shut down by March 15. The report also uncovered multiple accounts linked to the same identification proof, with transactions involving significant sums of money. There was also an unusually high number of dormant accounts.
After March 15, customers will no longer be able to deposit money into their Paytm Payments Bank accounts. However, they will still have the ability to withdraw or transfer funds. Salary credits, direct benefit transfers, subsidies, top-ups, and transfers of funds in wallets will not be available in Paytm Payments Bank accounts. Nonetheless, customers can still receive refunds, cashbacks, and sweep-ins from partner banks. They will not be able to recharge their FASTag issued by Paytm Payments Bank, nor recharge or top-up funds in NCMC cards issued by the bank. Additionally, customers will not be able to transfer money into Paytm Payments Bank accounts through UPI or IMPS after March 15.