PAYTM was a Success story
But now in a Problem . PAY-TM …. a Pioneer but now a Chinese JV Bank in India
No New Deposits or Credit Transactions Allowed after Feb 29, 2024
MAIN NEWS –
- RBI Imposes Restrictions on Paytm By Navasree A.M – On January 31, 2024 6:31 pm .
- The Reserve Bank of India ( RBI ) has imposed huge restrictions on the Paytm Payment Bank Ltd.
- According to the press release issued by the apex bank, it stated that the paytm shall not accept any new deposits or credit transactions or top ups to the customer accounts, wallets, FASTags, NCMC cards, etc after February 29, 2024.
- However, the interest, cashback or refunds which may be credited anytime.
- In 2022, the apex bank instructed Paytm to stop onboarding new customers.
- It also directed it to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system.
- Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing reports of the IT auditors, stated the press release issued in 2022.
- The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.
- Accordingly, in exercise of its powers under section 35A of Banking Regulation Act, 1949 and all other powers enabling it on that behalf, the Reserve Bank of India, on 31st January 2024 has issued few directions to Paytm.
- The paytm bank was DIRECTED NOT TO TAKE any further deposits or credit transactions or top up 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.
- The customer is ALLOWED to withdraw or utilize balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags.
SIGN OF RELIEF –
- National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance.
- The RBI’s decision did not affect the customers because the directions clearly clarified that the customers’ interest, refund or cashbacks can be credited to their account.
- Also, the customers can withdraw or utilize their balances up to their available balance.
- It is also clarified that the fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility will be provided by the paytm bank even after February 29, 2024.
- No other banking services, other than those referred above, like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024.
- The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are to be terminated at the earliest, in any case not later than February 29, 2024. Fifthly, the settlement of all pipeline transactions and nodal accounts (in respect of all transactions initiated on or before February 29, 2024) shall be completed by March 15, 2024 and no further transactions shall be permitted thereafter.
PAYTM Chinese JV Bank… now in problem RBI New Rules for PAYTM. PAYTM is in big problem. Hope things sort out soon. the people are getting their funds out… and things are in a mess.
Authored by Ms Sreoshee, Proud MLG Team member,