RBI restricted Paytm payments Bank from accepting deposits
RBI restricted Paytm Payments Bank operations after reports on non-compliance and supervisory concerns emerged.
A man in his middle age has made his living through stock market investments, he began his Investment in his 20s. He has now reached a position where he possesses a large house, a few sites, and a monthly income of 50,000 through his deposits. He has the freedom to be free now but the boredom forces him to do something, so he continues his Investment Journey. A few months back he made a few lakhs from Tata stocks now he is expecting the same in Paytm too.
He has mastered not only the art of Investing but the art of emotions too. However, he doesn’t know how the statement “RBI Restricted Paytm Payments Bank” from a news anchor will shatter his plans. Hours do pass while he spends his time analysing the next stock. When the sun is about to set, he switches on the news channel and gets stunned, in other words, paralysed. He gets stuck on his sofa and enters into his world of fear, negative thoughts, stress, confusion etc.
He is a man who is physically sitting on his sofa but mentally on another planet. The news anchor says the reason RBI Restricted Paytm Payments Bank from accepting deposits is due to non-compliance. He further reads “On March 11, 2022, the RBI banned the Paytm payments Bank from onboarding new customers” This issue started in 2022 itself says the anchor.
The anchor continues to say “ The RBI passed an order on January 31 which banned Paytm payments bank from offering the following services”, says the anchor.
A conversation takes place between the Anchor and the RBI spokesperson
Anchor: RBI restricted Paytm payments bank from offering services, what are the services included in it
Spokesperson of RBI: All the banking services no matter what their name or nature are restricted like the Adhaar-enabled payment system(AEPS), Immediate payment service(IMPS), Processing of payments, Bharat Bill Payment Operating Unit. Also, no new deposits, credit transactions or top-ups will be allowed in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Card cards, etc.
Anchor: What about the customers since RBI restricted Paytm payments bank from offering services, that have 300 million wallet users and 30 million bank account holders?
RBI spokesperson: There are no restrictions for the customers in case of withdrawing money from savings bank accounts, prepaid instruments, current accounts, fast tag cards, national common mobility cards etc. All these facilities can be utilized up to the balance the customer has in their accounts.
Anchor: When the nodal accounts of Paytm will be terminated?
RBI spokesperson: The Nodal Accounts of One97 Communications Limited and Paytm Payments Services Limited are to be terminated in any case on or before February 29, 2024.
The man is still frozen because his mind is filled with the words “RBI restricted Paytm payments bank”. His family members come to his rescue and they are expecting the worst like paralysis. However, the man recovers moments after the family’s comfort words, especially the word that “customers can withdraw the money they have in the account” had a higher impact than other words. The man breathes a sigh of relief and the family too, but for different reasons.
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1. RBI Restricted Paytm Payments Bank from offering services, why?
RBI passed the order over non-compliance with its rules in Business
2. Can customers withdraw their money from the accounts?
There are no restrictions for the customers they can withdraw their money whether they have a merchant account or savings account.
3. Will the UPI (Unified payment services) will be affected by the RBI order?
According to sources, the services of UPI won’t be affected as it is owned by the parent company