RBI’s Shocking Ban on Paytm Services: Wallets, Deposits, and FASTag to Go Dark – What’s Next for Users?

Ban on Paytm Services: Major action has been taken against the leading fintech company Paytm. The Reserve Bank of India (RBI) has banned the giant Paytm Payments Bank from adding new customers. This decision has come into effect with immediate effect. The central bank said on Wednesday that the bank is violating many rules. This has been revealed in the audit report. After this ban, customers will not be able to deposit money in their account. Also, RBI has said that wallet, Fastag and NCMC card will also not be topped up. However, permission has been given to the customer to withdraw money. 

Any kind of deposit will not be accepted 

According to RBI, Paytm Payments Bank should not deposit money from any customer. No deposit of any kind will be accepted in any customer’s account after 29th February. Even if this money is taken through wallet, Fastag or any other prepaid system.

The Reserve Bank said that this action has been taken on the basis of the report of external auditors. These reports revealed that the bank had consistently failed to comply with several financial regulations. Apart from this, many types of irregularities were found. The investigation into these allegations against Paytm Payments Bank will continue.

Customers will be able to withdraw their money 

The central bank instructed not to add any new customers at present. Also, the customer has been given complete freedom to withdraw money from his account. Customers will be able to withdraw money from their savings, current, prepaid, fasttag and National Common Mobility Card (NCMC) without any problem. 

All facilities to transfer money will have to be provided 

Even though the Central Bank has given instructions to stop all banking services. But, facilities to transfer money will have to be provided. These include AEPS, IMPS, BBPOU and UPI facilities.

Apart from this, RBI has also given instructions to close the nodal accounts of One97 Communications and Paytm Payments Bank Services Limited as soon as possible. Also, the bank has been given time till March 15 to settle all transactions and nodal accounts. After this no transaction will be accepted.