In this article, there will be updates regarding the Paytm Payments Bank Ban recent news. Is Paytm getting banned? Did RBI ban Paytm wallets? What is the reason for the ban? Is Paytm Payments Bank Closed, and possible effects on customers, Let’s find out! How to withdraw money after RBI Banned Paytm Payments Bank.
RBI Ban On Paytm Payments Bank wallet?
During a press release on March 11th, 2022, the Reserve Bank of India in the exercise of its power under section 35A of the Banking Regulation Act 1949 directed Paytm Payments Bank Limited (PPBL) to stop onboarding new customers with immediate effect. Recently, Paytm payments bank has been barred from accepting deposits or top-ups in any customer accounts prepaid instruments, wallets, and Fastags after 29th February 2024.
Due to non-compliance of orders, the Reserve Bank of India on 31st January 2024 instructed them not to onboard any new customers. This noncompliance with the agreement through Paytm also led to the ban of Paytm payment bank limited Fastags.
What was the reason for RBI deciding on the ban?
The report released from RBI stated ‘The comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent noncompliances and continued material supervisory concerns in the bank, warranting further supervisory action. The RBI instructed the bank to appoint an income tax audit firm to conduct a thorough system model of its IT system of Paytm due to a noncompliance agreement back in 2022, which instructed PPBL to stop onboarding new customers for Fastags.
What rules are being imposed regarding the ban? Possible effects on customers.
- After 29th February, customers won’t be able to make further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments wallets, Fastags, or NMCC cards.
- No further deposits or credit transactions shall be allowed in any customer accounts. Other than any interest, cashback, or refunds may be credited anytime.
- No other banking services, other than those referred to above, and UPI facility should be provided by the bank after 29th February 2024.
- The Nodal accounts of One97 Communications Ltd and Paytm Payment Services Ltd are to be permitted at the earliest.
- Settlement of all pipeline transactions and Nodal accounts shall be completed by 15th March 2024.
How to withdraw money after RBI Banned Paytm Payments Bank.
“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, upto their available balance.”
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