Explained: Why RBI Has Put Restrictions On Paytm Payments Bank

Paytm Payments Bank has been ordered by the RBI to stop accepting fresh deposits in its accounts or popular wallets after February 29, 2024.

The Reserve Bank of India (RBI) on Wednesday ordered Paytm Payments Bank to stop accepting fresh deposits in its accounts or popular wallets after February 29, 2024. Update: Paytm Payments Bank Limited, an associate of Paytm receives RBI directions. Paytm to expand its existing relationships with leading third-party banks to distribute payments and financial services products.Read more here: https://t.co/NsPCOxp6VJpic.twitter.com/fQjozyR11m

Paytm Payments Bank, which is part of one of India's largest payment firms Paytm, was told by the regulator that it will not be able to take fresh deposits, facilitate credit transactions, or offer fund transfers, including Unified Payments Interface (UPI) facility after February 29.

"No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime," Yogesh Dayal, a chief general manager with the central bank, said in a press statement.