After RBI's action against Paytm, RBI Governor Shaktikanta Das said - Paytm was given enough time, but they did not improve. If any organization does not follow the rules, we will have to take action. We are a responsible regulator.
In the last few days we have received a lot of questions from people. We have noted them. Based on that, we will issue a FAQ (questions and answers) next week.
All our actions are aimed at systemic stability and protecting the interests of depositors. These cannot be compromised. The case of Paytm is related to a specific institution. There is nothing to worry about in the entire system.
Whereas Deputy Governor Swaminathan J. Said that action was taken against Paytm after continuous non-compliance. Such action comes after months and sometimes years of negotiations, where we point out the shortcomings and also allow time for corrective action.
After February 29, money will not be deposited in the Paytm Payment Bank account. Money cannot be deposited into wallet, prepaid services, Fastag and other services through this bank. However, interest, cashback and refund can be credited to the account at any time.
There is no restriction of any kind on the withdrawal or use of money in the savings account, current account, prepaid instruments, Fastag, National Common Mobility Card etc. of the customers of this bank. It can be used till the balance is available.
Apart from the services mentioned in the second point, Paytm Payment Bank will not be allowed to provide any banking service after February 29, 2024. UPI facility will also not be provided after February 29.
The nodal accounts of One97 Communications and Paytm Payments Services will be closed by 29 February 2024. The transactions in the pipeline and settlement of nodal accounts will be completed by March 15, 2024. After that no further transactions will be allowed.
