The Reserve Bank of India (RBI) imposes stringent restrictions on Paytm Payments Bank, prohibiting UPI services and deposits after February 29, 2024. Learn more about the regulatory actions and their impact on Paytm's banking operations in this update.
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#PayTm #RBI #ReserveBankofIndia #UPI #PaytmPayments #BankingNews #Finance #Business #DigitalPayments #OnlinePayment #Oneindia
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NewsTranscript
00:00 In a significant development, the Reserve Bank of India (RBI) has imposed stringent
00:05 restrictions on Paytm Payments Bank, prohibiting any deposits, credit transactions or top-ups
00:12 in customer accounts after February 29, 2024, according to the Central Bank statement.
00:19 No further deposits or credit transactions or top-ups shall be allowed in any customer
00:25 accounts, prepaid instruments, wallets, pass-tags, NCMC cards i.e. National Common Mobility Cards,
00:32 etc. after February 29, 2024, other than any interest, cashbacks or refunds which may be
00:40 credited any time.
00:42 Under Section 35A of the Banking Regulations Act, 1949, the RBI has directed the termination
00:49 of nodal accounts of 197 Communication Ltd. and Paytm Payments Services Ltd. by February
00:56 29, 2024.
00:58 This regulatory action comes in response to Paytm Payments Bank's persistent non-compliances
01:05 and continued material supervisory concerns.
01:08 Despite the RBI's previous directive in March 2022 to halt onboarding new customers, the
01:15 recent move follows non-compliance findings in the Comprehensive System Audit Report and
01:20 subsequent Compliance Validation Report by external auditors.
01:24 The RBI also clarified that Paytm Payments Bank customers can withdraw or utilize balances
01:31 from their accounts, including saving bank accounts, current accounts, prepaid instruments,
01:36 pass-tags and NCMC, until their available balance.
01:41 However, the bank is prohibited from offering any other banking services, including UPI
01:47 facilities and fund transfers, after February 29, 2024.
01:52 "Settlement of all pipeline transactions and nodal accounts, in respect of all transactions
01:58 initiated on or before February 29, 2024, shall be completed by March 15, 2024 and no
02:06 further transactions shall be permitted thereafter," added the RBI.
02:11 The stringent measures indicate the severity of concerns regarding compliance and oversight
02:18 of Paytm Payments Bank.
02:24 [BLANK_AUDIO]