The Reserve Bank of India has reportedly taken major action against India’s leading payment app Paytm. RBI has ordered to stop banking services of Paytm.
Due to this order, digital payment and financial services company Paytm is in danger. RBI has banned Paytm Payments Bank from adding new customers with immediate effect from January 31. It has been requested to comply with this order with immediate effect.
A comprehensive system audit report and subsequent compliance verification report by external auditors revealed persistent non-compliance and persistent material supervisory concerns at the bank, requiring further supervisory action, the RBI said.
No deposit or credit transaction or top up will be allowed in any customer account, prepaid device, wallet, Fastag, NCMC card etc. after 29th February 2024 without any interest, cashback or refund.
However, RBI also clarified that the lender’s customers are allowed to withdraw or utilize up to the available balance from their accounts including savings bank accounts, current accounts, prepaid, FASTags, National Common Mobility Cards, etc.