Uninstall Paytm App??
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RBI bans Paytm Payment Bank from onboarding customers due to non-compliance issues
The Reserve Bank of India (RBI) has taken this action against Paytm Payments Bank, which is an associate of the listed entity One 97 Communications, in response to persistent non-compliances and continued material supervisory concerns in the bank. Here’s how it will impact customers.
In a shocking turn of events, Paytm Payments Bank has been barred from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, among others after February 29, 2024.
Due to non-compliances and continued material supervisory concerns in the bank, the Reserve Bank of India on Wednesday instructed them not to onboard any new customers.
Paytm Payments Bank is an associate of the listed entity One 97 Communications Ltd, which holds a 49% stake in the unit.
The official statement added that the nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd should also be terminated at the earliest, and no later than 29 February, 2024.
It also ordered the settlement of all pipeline transactions and nodal accounts to be completed by March 15, 2024. No further transactions shall be permitted thereafter.
Why did RBI imposes major business restrictions on Paytm Payment’s Bank?
The apex bank has taken this action against Paytm in response to a comprehensive system audit report and subsequent compliance validation report conducted by external auditors.
The RBI had already directed the bank to appoint an Income Tax audit firm to conduct a thorough System Audit of its IT system due to worries about non-compliance back in 2022. This action follows the RBI’s earlier directive in March 2022, instructing PPBL to stop onboarding new customers immediately.
Source – Economic Times
