• January 31, 2024
  • mirablefact@gmail.com
  • 0

The RBI’s action against PPBL is the result of an external auditor’s compliance validation report and a thorough system audit report.

On January 31, the Reserve Bank of India (RBI) placed limitations on Paytm Payments Bank Ltd (PPBL) in response to an external auditor’s compliance validation report and system audit report.

Section 35A of the Banking Regulation Act, 1949 prohibits PPBL from taking deposits or top-ups in any client account, wallet, or FASTag after February 29.
The RBI stated in a statement that the audit reports’ continuous material supervisory concerns and chronic non-compliance with the law required additional supervisory action.

“No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime,” it read.

“The bank should not offer any additional banking services, such as fund transfers (regardless of the name or type of service, such as AEPS, IMPS, etc.), BBPOU, or UPI facilities, after February 29, 2024,” the statement continued.

Also read: Neuralink ‘successfully’ implanted a brain chip into first human patient, according to Elon Musk.

The RBI further stated that One97 Communications and Paytm Payments Services Ltd.’s Nodal Accounts must be closed as soon as possible and, in any event, no later than February 29, 2024.

However, the banking regulator stated in a statement that customers may withdraw or use balances from their accounts, including savings bank accounts, current accounts, prepaid cards, FASTags, and National Common Mobility Cards, without any limitations, up to their available balance.

The central bank declared that no more transactions would be allowed after March 15, 2024, until all pipeline transactions and nodal accounts (pertaining to all transactions started on or before February 29, 2024) had been settled.

The RBI had instructed PPBL to cease onboarding new customers immediately earlier in March 2022.

Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *