The Reserve Bank of India today put stricter restrictions on the Paytm Payments Bank (PPB) and ordered that PPB cannot onboard new customers and cannot undertake further deposits or credit transactions after February 29 this year. While the RBI had barred the PPB from onboarding new customers in 2022, the new orders prevented it from other transactions.
RBI said that the Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action. The RBI then directed PPB not to allow further deposits or credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, other than any interest, cashbacks, or refunds which may be credited anytime.
Now, the question is whether you should be worried if your bank account is linked to Paytm. The answer to this is no. The RBI’s fresh decision is not going to inflict any losses on you as the RBI has ordered Paytm to allow customers to withdraw their all deposits from any of the Paytm instruments including wallets and FASTags.
The RBI said that withdrawal or utilization 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 the balance available in their account.
The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, it said.