RBI Issues Orders for Existing and New Users of Paytm Payments Bank

The RBI recently issued an order that prohibits the addition of new customers to Paytm Bank effective immediately. 
 

The RBI issued this directive on 31 January 2024. Additionally, existing Paytm Payments Bank customers will also be unable to add new funds to their accounts after 29 February. 
 

The RBI instructed Paytm to halt the addition of funds to the accounts of existing customers after 29 February. 
 

Allegations have been raised against Paytm of consistently disregarding compliance standards, citing findings from a system audit report and subsequent validation report. 
 

Additionally, numerous other shortcomings related to Paytm Banks have been found out, prompting the consideration of further necessary actions against them in the future. 
 

According to the RBI, existing customers of Paytm Banks can continue to use the funds available in their accounts.