The Reserve Bank of India on Wednesday barred Paytm Payments Bank from accepting fresh deposits or top-ups in any customer accounts, wallets or prepaid instruments after February 29.
The central bank said that from March 1, Paytm Payments Bank should not provide any other banking services such as Aadhaar Enabled Payment System, Immediate Payment Service, Bharat Bill Payment Operating Unit and Unified Payments Interface.
However, customers can continue to use the balance amount in their accounts without any restrictions.
In March 2022, the Reserve Bank of India barred the Paytm Payments Bank from getting new customers, citing “material supervisory concerns” in the functioning of the bank.
On Wednesday, the central bank said that a comprehensive system audit report and subsequent reports by external auditors “revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action”.
Paytm Payments Bank, which is a subsidiary of One97 Communications Limited, said it was taking immediate steps to comply with the central bank’s directives, and added that this included “working with the regulator to understand their concerns as quickly as possible”.
One97 Communications said that it works with several banks, not just Paytm Payments Bank, on payment products.
“We now will accelerate the plans and completely move to other bank partners,” the company said. “Going forward, OCL will be working only with other banks, and not with Paytm Payments Bank Limited.”
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