Action against Paytm Payments Bank Ltd under Section 35A of the Banking Regulation Act, 1949

Summary:

The Reserve Bank of India (RBI) has issued new directions to Paytm Payments Bank Ltd (PPBL) due to certain business restrictions imposed earlier. Key highlights include:

1. No further deposits or credit transactions are allowed in customer accounts, prepaid instruments, and wallets after March 15, 2024, except for certain transactions like interest, cashbacks, and refunds.
2. Customers can withdraw their balances without restrictions, up to their available balance, from savings bank accounts, current accounts, prepaid instruments, and wallets.
3. The bank cannot provide other banking services, such as fund transfers, after March 15, 2024, except for allowing withdrawals of available balances.
4. The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd maintained by PPBL are to be terminated by February 29, 2024.
5. The settlement of pipeline transactions in nodal accounts shall be completed by March 15, 2024, and no further transactions shall be permitted thereafter.

These directions aim to facilitate customers' continuity of their financial transactions and ensure public interest.

Please note that the RBI has also issued a list of FAQs for the convenience of customers and the public.