Latest News

RBI stops Paytm Payments Bank from accepting deposits after 29 Feb, What will happen to customers now


➡️ Click here to join our Whatsapp Group

The Reserve Bank of India (RBI) has taken action against Paytm Payments Bank Ltd (PPBL), imposing restrictions on its banking operations. After February 29, 2024, PPBL will no longer be able to accept deposits or credit transactions, or allow top-ups in customer accounts or prepaid instruments such as wallets and FASTags.

“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, up to their available balance,” the statement said.

“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,” it added.

However, customers will still be able to utilize the balances in their accounts, including savings and current accounts, without any restrictions, up to their available limit.

The RBI’s decision to impose these restrictions is based on persistent non-compliances and continued material supervisory concerns identified during a comprehensive audit of PPBL’s systems conducted by external parties.

The RBI had previously directed PPBL to stop accepting new customer accounts in March 2022.

Despite the restrictions on its banking operations, Paytm can still be used as a digital payment option as long as the account is linked to an external bank.

In December, One97 Communications implemented the use of Artificial Intelligence (AI) to automate certain processes, resulting in layoffs across various verticals. The company stated that the use of AI is aimed at reducing costs, improving operational efficiency, and eliminating redundant tasks.

Please note that neither the company nor its founder/CEO, Vijay Shekhar Sharma, have responded to the RBI’s action at this time.

Leave a Reply

Your email address will not be published. Required fields are marked *

Home
Calculators
Menu
Search