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ARTICLE · 26 JULY 2024

RBI Takes Action Against Paytm Bank

Pioneer Legal
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RBI vide its Press Release dated January 31, 2024 initiated an action against Paytm Payments Bank Limited ("PPBL").

IndiaFinance and Banking
Jinal Shah
Jinal Shah
Rugwed Dhage
Rugwed Dhage
Smrithi Balasubramanian
Smrithi Balasubramanian
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RBI vide its Press Release dated January 31, 2024 initiated an action against Paytm Payments Bank Limited ("PPBL"). RBI in exercise of its powers under Section 35A of Banking Regulation Act, 1949 directed PPBL the following:

  • 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, except for any interest, cashbacks, or refunds which may be credited anytime.
  • Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, up to their available balance.

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