Paytm Payments Bank Limited is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more from February 29 onwards.
Paytm Payments Bank has reassured its customers that their existing balances are safe, following the Reserve Bank of India’s (RBI) directive restricting the bank from accepting new deposits or allowing credit transactions after February 29, 2024.
In an email and text message to customers, the bank stated that while new deposits or credit transactions will not be permitted after the specified date, there is no restriction on withdrawing money from existing balances.
“Your money is safe with the bank,” the Paytm Payments Bank said.
The central bank’s action follows a comprehensive system audit report and compliance validation by external auditors. Starting February 29, 2024, Paytm Payments Bank Limited (PPBL) is prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and more.
Customers are allowed to withdraw or use balances without restrictions, but other banking services like fund transfers and UPI facilities will be discontinued. The nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd. must be terminated by February 29, 2024.