RBI extends deadline for Paytm Payments Bank to stop transactions

As per a January 31 order of the RBI, Paytm Payments Bank was asked to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29

Mumbai: The RBI on Friday gave 15 days more till March 15, 2024 to Paytm Payments Bank Ltd (PPBL) to stop deposits, credit transactions or top-ups in any customer accounts, wallets, and FASTags, keeping in view the interest of customers, including merchants.

As per a January 31 order of the central bank, PPBL was asked to stop further deposits, credit transactions, or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, and National Common Mobility Cards, after February 29.

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The RBI said this is being done keeping in view the interest of customers (including merchants) of PPBL who may require a little more time to make alternative arrangements and the larger public interest.

“Further, it is directed that the bank shall facilitate a seamless withdrawal of customer deposits that are parked with partner banks under the automatic ‘sweep-in sweep-out’ facility without causing any inconvenience to such customers,” the Reserve Bank of India said.

The central bank has taken action against PPBL for persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.

On Friday, the RBI also released a list of Frequently Asked Questions (FAQs), for the convenience of customers of PPBL, and the general public at large.