close
Choose your channels

RBI crackdown on PayTm Payments Bank

Thursday, February 1, 2024 • Telugu Comments
Listen to article
--:-- / --:--
1x
This is a beta feature and we would love to hear your feedback?
Send us your feedback to audioarticles@vaarta.com

RBI crackdown on PayTm Payments Bank

Effective February 29, 2024, the Reserve Bank of India (RBI) has imposed certain restrictions on Paytm Payments Bank Limited (PPBL) to ensure compliance and safeguard the interests of customers in the digital payment ecosystem. These restrictions include:

1. Prohibition on Accepting Deposits: PPBL is prohibited from accepting additional deposits into any of its customer accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, and National Common Mobility Cards (NCMC).

2. Restriction on Credit Transactions: PPBL is not permitted to engage in any credit transactions, which includes lending money or issuing credit products.

3. Discontinuation of Top-Ups: Top-ups or recharges for prepaid instruments, wallets, FASTags, and NCMC cards issued by PPBL are no longer allowed.

4. Exceptions: Interest, cashbacks, or refunds can still be credited to PPBL customer accounts at any time without restrictions.

5. Account Withdrawal and Utilization: Customers of PPBL can continue to withdraw or utilize their existing balances from their accounts up to the extent of their available balance. This includes all types of accounts, such as savings bank accounts, current accounts, prepaid instruments, FASTags, and NCMC cards.

6. Discontinuation of Banking Services: Effective February 29, 2024, PPBL is no longer authorized to provide additional banking services beyond withdrawals and account utilization. This includes fund transfers through various channels such as AEPS (Aadhaar Enabled Payment System) and IMPS (Immediate Payment Service), Bharat Bill Payment Operating Unit (BBPOU), and Unified Payments Interface (UPI) facilities.

7. Settlement of Pipeline Transactions: PPBL has been given a strict deadline to settle all pipeline transactions and nodal accounts related to transactions initiated on or before February 29, 2024. These transactions must be resolved by March 15, 2024, after which no further transactions will be permitted.

8. Regulatory Compliance and Customer Protection: The RBI has emphasized that these restrictions are aimed at ensuring regulatory compliance and safeguarding the interests of customers within the digital payment ecosystem. The RBI is committed to maintaining a robust and secure financial environment for users of digital payment services.

These restrictions are intended to protect customers, ensure compliance with regulatory guidelines, and maintain the integrity of the digital payments landscape in India.

Follow us on Google News and stay updated with the latest!   

Comments

Welcome to IndiaGlitz comments! Please keep conversations courteous and relevant to the topic. To ensure productive and respectful discussions, you may see comments from our Community Managers, marked with an "IndiaGlitz Staff" label. For more details, refer to our community guidelines.
settings
Login to post comment
Cancel
Comment