The Reserve Bank of India has directed Paytm’s payments bank to halt deposits, credit transactions and top-ups in customer accounts, prepaid instruments and wallets after February 29 in new stringent penalties after the central bank found the company in non-compliance with the previous ban.
Wednesday’s move comes on the heels of India’s central bank ordering Paytm Payments Bank to stop accepting new customer accounts in 2022. The Reserve Bank of India said a comprehensive audit by external auditors found “persistent” instances of non-compliance and “continuing material supervisory concerns” at the bank.
Payments bank Paytm will also stop banking services – including money transfers and UPI transactions – after February 29, RBI says He said in a press release (PDF). It also directed One97 Communications, Paytm’s parent company, and Paytm Payments Services to terminate their nodal accounts.
More to follow.