The Reserve Bank of India on Wednesday barred Paytm Payments Bank from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, and FASTags, after February 29, 2024.
In its notice, the central bank said action against Paytm is in response to a comprehensive system audit report and subsequent compliance validation report conducted by external auditors.
“The Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” the Reserve Bank of India said in a statement.
It added: "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."