Mumbai: The Reserve Bank of India (RBI) has directed the Paytm Payments Bank to stop onboarding new customers with immediate effect. The apex bank also directed the Paytm Payments Bank to stop accepting deposits into prepaid instruments, wallets and FASTags after February 29. But, it allowed the bank to credit interests, cashbacks and refunds.
It allowed customers to withdraw and utilise their balances held with the bank. Paytm’s bank has also been prohibited from providing Unified Payment Interface (UPI) facilities after February 29.
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RBI informed that the nodal accounts of One97 Communications Limited, which is Paytm’s parent company, and of Paytm Payments Services ‘are to be terminated at the earliest, in any case not later than February 29’.
In March 2022, the RBI directed the bank to stop onboarding new customers and to appoint an IT audit firm to ‘conduct a comprehensive system audit of its IT system’.
The apex bank said in a press release that action is being taken against Paytm for persistent non-compliance and continued material supervisory concerns in the bank.
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