MANU/RPRL/0068/2024
Ministry : Reserve Bank of India
Department/Board : Press Release
Press Release No. : 2023-2024/1774
Date : 31.01.2024
Notification/ Circulars Referred : In Press Release dated March 11, 2022 MANU/RPRL/0118/2022
Citing Reference:
In Press Release dated March 11, 2022 MANU/RPRL/0118/2022 Referred
Action against Paytm Payments Bank Ltd under Section 35A of the Banking Regulation Act, 1949
1. In 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 or the bank) to stop onboarding of new customers with immediate effect.
2. 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.
3. 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 as below:
i. 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.
ii. Withdrawal or utilisation of balances by its customers from their
accounts including savings bank accounts, current accounts, prepaid instruments,
FASTags, National Common Mobility Cards, etc. are to be permitted without any
restrictions, upto their available balance.
iii. No other banking services, other than those referred in (ii) above, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024.
iv. 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
February 29, 2024.
v. 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.
(Yogesh Dayal)
Chief General Manager