Paytm Faces Ban on Deposits: RBI Takes Action, The Reserve Bank of India (RBI) has imposed a complete ban on Paytm Payments Bank Limited, preventing them from accepting deposits or top-ups in any customer’s account, prepaid instruments, wallets, Fastags, etc., after February 29, 2024. This stringent action was taken due to Paytm Payments Bank Limited’s persistent non-compliance with rules and supervision guidelines.
Transaction Issues for Paytm Users
Following the RBI’s action, Paytm users are experiencing difficulties in making payments. Although the deduction is initiated during payment, transactions are not completing successfully. Users face the challenge of payments getting canceled after the deduction, with no money being refunded.
Reasons for RBI Action
The RBI took action against Paytm due to concerns about ongoing non-compliance with rules and material supervision issues in the Payments Bank. Further inspection and regulatory action were deemed necessary by the central bank.
According to the RBI, “No deposit or credit transaction or top-up will be allowed in any customer account, prepaid medium, wallet, Fastag, NCMC card, etc., after February 29, 2024. However, no interest, cashback, or refunds can be credited at any time.”
Continued Services for Paytm Payments Bank Customers
RBI assured that Paytm Payments Bank customers will not face issues in withdrawing balances from their accounts, including savings and current accounts, prepaid mediums, Fastags, and National Common Mobility Cards (NCMC).
It’s essential to note that the RBI has not imposed any ban on the Paytm app. However, users should exercise caution when conducting transactions. While the issue seems to affect only a subset of users, it is advisable to be vigilant, especially before sending significant amounts.