Paytm Payments Bank will stop offering services like accepting deposits and processing credit transactions starting March 15, as directed by the Reserve Bank of India.
(https://www.rbi.org.in/commonperson/English/scripts/FAQs.aspx?Id=3573)
The RBI on January 31 directed Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29, due to concerns around large-scale non-compliance of regulations and supervisory issues.
The Bombay Stock Exchange (BSE) has also issued guidelines for investors who use the bank exclusively for stock trading.
The central bank has ordered the shutdown of Paytm Payments Bank due to concerns over non-compliance issues. Reports indicate that numerous accounts were opened without proper identification, raising worries about potential involvement in illicit activities such as money laundering. This information has been shared with authorities including the Enforcement Directorate (ED) and the Prime Minister’s Office. In response, Revenue Secretary Sanjay Malhotra said that the ED will investigate Paytm Payments Bank, which is scheduled to temporarily cease operations by March 15. Additionally, the report highlighted instances of multiple accounts being linked to the same identification proof, along with transactions involving significant sums of money. Moreover, an unusually high number of dormant accounts were discovered, prompting further scrutiny.
What will change after Paytm Payments Bank shuts down?
-Customers will not be able to deposit money into their Paytm Payments Bank accounts, but will still be able to withdraw or transfer funds after March 15.
-Salary Credit, Direct Benefit Transfers, or Subsidies will not be available in Paytm Payments Bank accounts, but refunds, cashbacks, and sweep-ins from partner banks will still be allowed.
– Customers will not be able to access the top-up facility and transfer money in their wallets after March 15. However, they can make payments if there is a balance available in their accounts.
-Recharge or top-up of funds in NCMC cards issued by Paytm bank will no longer be possible.
-Customers will not be able to transfer money into Paytm Payments Bank accounts through UPI or IMPS after March 15.
