RBI directs Paytm Payments Bank not to onboard new customers after February 29
Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to not onboard new customers and also not to undertake further deposits or credit transactions after February 29 this year.
In a press release dated March 11, 2022, the Reserve Bank of India, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, had directed Paytm Payments Bank Ltd (PPBL) to stop onboarding new customers with immediate effect.
The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.
Accordingly, in exercise of its powers under Section 35A of Banking Regulation Act, 1949, and all other powers enabling it in that behalf, the Reserve Bank of India, has today directed PPBL to no 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.
