RBI action against Paytm: List Of Services You Won’t Be Able To Use

Reserve Bank of India (RBI) has recently imposed restrictions on Paytm Payments Bank, barring them from accepting deposits or top-ups in customer accounts. This prohibition extends to various financial instruments, including prepaid instruments, wallets, FASTags, and NCMC cards. As of February 29, Paytm Payments Bank is also restricted from providing additional banking services, including fund transfers, regardless of the nature and naming of services such as AEPS, IMPS, BBPOU, and UPI facilities.

The central bank assures customers of Paytm Payments Bank that they can freely withdraw and utilize their existing balances. The RBI affirms that there are no limitations on utilizing balances in savings accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., until February 29, 2024. Nevertheless, as of March 1, 2024, no additional deposits, credits, or top-ups will be accepted.

Lists Of Service to banned on Paytm Payments Bank are:-

  1. NCMC Cards, which includes Food, Online Shopping, Bus, Metro. Major Platform includes are DMRC, Zomato, ZARA, Swiggy, among others
  2. Fastags
  3. IMPS, AEPS, BBPOU, and UPI Facilites,
  4. Fund Transfers

As per the RBI, the Nodal Accounts associated with One97 Communications Ltd and Paytm Payments Services Ltd. will be promptly closed, with the deadline set for no later than February 29, 2024. Any pending transactions and nodal accounts initiated on or before February 29, 2024, will be resolved by March 15, 2024. No transactions will be allowed beyond this specified date.

The RBI’s measures primarily target Paytm’s banking operations. Nevertheless, customers can continue using Paytm for digital payments as long as their accounts are connected to an external bank.

The central bank said a Comprehensive System Audit report, along with a subsequent compliance validation report by external auditors, identified ongoing non-compliance and significant supervisory concerns in the bank. This necessitated additional supervisory measures.

Paytm Payments Bank must comply with these restrictions until further directives from the RBI. Customers are advised to stay informed about these modifications and adjust their financial transactions accordingly.

Earlier, the Indian Highways Management Company (IHMCL), an NHAI division, had suspended Paytm Payments Bank from issuing new FASTags due to non-compliance with the specified parameters outlined in the service-level agreement.

Source- Times Now

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