The Indian bank regulator, RBI, has told Paytm Payments Bank to stop taking on new customers right away. This is because of a law called the Banking Regulation Act, which allows the RBI to do this if they find problems with a bank.
With effect from February 29, 2024, all client accounts, prepaid cards, wallets, FASTags, NCMC cards, and other related platforms will no longer accept deposits, credit transactions, top-ups, or withdrawals. The bank is not allowed to offer any more banking services after February 29, 2024, including fund transfers (including services like AEPS, IMPS, etc.), BBPOU, and UPI facility, per the RBI circular published on January 30, 2024.
Interest, cashbacks, and refunds—which are subject to credit at any time—will be the only exclusions. Senders are still free to use the application to take money out of their wallet or account whenever they want to, without being restricted in any way.
But according to reports, Users are not barricaded with the allowance of using or withdrawing any balance from their accounts, which include savings bank accounts, current accounts, prepaid cards, FASTags, National Common Mobility Cards, and other accounts. Beginning on March 1, 2024, no additional credits or top-ups will be allowed into the Paytm Payments Bank account or wallet.
