The Reserve Bank of India (RBI) has taken strict action against Paytm Bank Limited and banned it from adding new customers. RBI has imposed this ban after exercising the powers under Section 35A of the Banking Regulation Act 1949. After which the shares of the company have also fallen by 20 percent. Paytm shares opened at 608.80 today after BAC was imposed.
On Wednesday, Paytm Payment Bank Limited (PPBL) has banned accepting deposits or top-ups in any customer account, prepaid instruments, wallet and Fastag after February 29, 2024. Paytm is accused of irregularities in banking regulation, due to which RBI has taken this big action.
RBI has also said that existing customers of Paytm Payments Bank will be able to use their money kept in savings account, current account, prepaid instrument, Fastag, National or Common Mobility Card without any restriction.
Deadline for getting Fastag KYC extended
At the same time, National Highway Authority of India (NHAI) has extended the deadline for updating KYC of Fastag from the bank by one month.
The Reserve bank has said that a system audit report and subsequent compliance validation report have revealed that the company has consistently flouted compliance standards. Bank should settle nodal account by 15th March. Apart from this, many other supervisory shortcomings related to Paytm Bank have also come to light, due to which more necessary actions will be taken against the company in future.
What did RBI say?
However, RBI has also said that the existing customers of Paytm Payments Bank can make full use of their existing amount. Whether the money is in savings account, current account, prepaid instrument, Fastag, National or Free Common Mobility Card, it can be used. There is no date restriction on this.
You can use the money currently in your account as per your wish till any date. But after February 29, new amount cannot be added to any of these services.
After this action taken by RBI against Paytm Payments Bank Limited, many questions are arising in the minds of Paytm Payments Bank Limited customers.
What are the options for refund of wallet amount?
There is no option to refund wallet amount. The amount left in the wallet can be used. Money will not be able to be added to the wallet after 29 February 2024.
What has been decided regarding UPI facility?
After February 29, 2024, banking services like UPI facility, Bharat Bill Pay and fund transfer facility will be banned.