The Reserve Bank of India has issued new restrictions against Paytm Payments Bank, which processes transactions for financial services giant Paytm. prohibiting you from accepting deposits, credit transactions, top-ups on customer accounts, prepaid instruments and wallets, as well as many banking services after February 29.
Wednesday's move comes after India's central bank ordered Paytm Payments Bank to stop accepting new customer accounts in 2022. The RBI said a comprehensive audit by third-party auditors found “persistent” non-compliance and “continuing material concerns.” supervision” at the bank.
The RBI also ordered One97 Communications, the parent company of Paytm, and Paytm Payments Services to cancel your nodal accounts “as soon.” Customers can continue to withdraw money from their accounts, the RBI said.
Without the nodal account, Paytm will likely have to shift many of its businesses to other banks, according to a preliminary assessment by industry executives.
Payment Payments Bank will also not be able to offer credit transactions, even through wallets, the RBI said.
More to follow.
