The Reserve Bank of India, on Wednesday, directed Paytm Payments Bank Ltd to stop onboarding new customers with immediate effect.
According to an RBI release, the action was necessitated after a comprehensive system audit report and subsequent compliance validation report of the external auditors found that there have been persistent non-compliance and continued material supervisory concerns in the bank.
"No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime," RBI said.
The bank said customers will be allowed to withdraw or use balances from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards.
"No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime," the central bank said.
RBI directed that the nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd. should be terminated before February 29. "Settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter," it added.
