The Reserve Bank of India instructed Paytm Payments Bank to halt all deposits, transactions, and top-ups in customer accounts after February 29, 2024, except for interest, cashback, or refunds. This directive follows persistent non-compliance issues revealed in audits.
Customers can still withdraw or use their balances without restrictions until the available balance is exhausted. However, no other banking services will be available after the specified date. Additionally, the RBI mandated the termination of Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd by February 29, 2024. Settlement of ongoing transactions must be completed by March 15, 2024, with no further transactions permitted thereafter.
In March 2023, the RBI had already prohibited Paytm Payments Bank from onboarding new customers due to observed supervisory concerns. This recent action underscores the ongoing scrutiny of the bank’s operations by regulatory authorities.