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

Summary:

The Reserve Bank of India (RBI) has imposed restrictions on Paytm Payments Bank, requiring it to stop accepting new credits into its customer accounts and wallets by March 15, 2024. To ensure seamless digital payments and minimize concentration risk, NPCI has been advised to examine Paytm's request to become a Third-Party Application Provider (TPAP) for UPI, and to facilitate the migration of '@paytm' handles to other banks. Other measures include allowing OCL to open settlement accounts with PSP Banks and advising customers with Paytm Payments Bank accounts to make alternative arrangements with other banks before March 15, 2024. These actions aim to protect customers and the payment system from potential disruptions.