Reserve Bank directs Paytm Payments Bank to stop onboarding new customers with immediate effect; Also bars it from accepting deposits after 29th February.

Updated, Jan. 31, 2024. 9.19 PM.

Reserve Bank of India has directed Paytm Payments Bank Ltd to stop onboarding new customers with immediate effect and has barred it from accepting deposits after the 29th of February. RBI said in a press release that action is being taken against Paytm for persistent non-compliance and continued material supervisory concerns in the bank.

In exercise of its powers under section 35A of the Banking Regulation Act, RBI has directed that no further deposits and credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, and FASTags after the 29th of February, other than any interest, cashbacks, or refunds which may be credited anytime.

Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards, are to be permitted without any restrictions, up to their available balance.

RBI added that 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 the 29th of February.