Paytm Bank Faces RBI Restriction

By: Mobin

The RBI has imposed significant business restrictions on Paytm Payments Bank, effective February 29th, due to persistent non-compliance.

Restrictions 

Fresh deposits & credit activities will be paused, except for interest, cashbacks & refunds. 

Limit Transactions

Paytm Payments Bank is prohibited from onboarding new customers and expanding its user base.

No New Customers

The restrictions address issues uncovered in audit reports about non-adherence to regulations.

Audit Non-Compliance  

Existing customer account services will remain unaffected. They can still use accounts.

Existing Services  

This raises uncertainty about the bank's future operations and regulatory compliance.

Future Operations

RBI intervention highlights the necessity of sound practices. Existing users should monitor updates and consider other financial solutions.

Compliance

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