The RBI directed the Paytm Payments Bank to stop accepting deposits or top-ups in in customer accounts, wallets, FASTTags and other instruments after February 29
However, any interest, cashbacks, or refunds may be credited back to customers anytime
The direction follows persistent non-compliances and continued material supervisory concerns, the central bank said in a statement
On March 11, 2022, the RBI had barred PPBL from onboarding new customers with immediate effect
Paytm group firm PPBL did not offer any comments on the RBI’s direction against the bank
Further, withdrawal or utilisation of balances by its customers from their accounts and National Common Mobility Cards are to be permitted without any restrictions, up to their available balance
One97 Communications holds a 49 per cent stake in Paytm Payments Bank Limited but classifies it as an associate of the company and not as a subsidiary