The Reserve Bank of India has directed Paytm’s Payments Bank to cease deposits, credit transactions and top-ups in customer accounts, prepaid instruments and wallets after February 29 in new strict penalties after the central bank found the firm to be in non-compliance with an earlier embargo.
Wednesday’s move follows the Indian central bank ordering Paytm Payments Bank to stop accepting new customer accounts in 2022. RBI said a comprehensive audit by external auditors found “persistent” non-compliances and “continued material supervisory concerns” in the bank.
Paytm’s Payments Bank will also cease banking services — including fund transfers, UPI transactions — after February 29, RBI said in a press release (PDF). It has also directed One97 Communications, the parent firm of Paytm, and Paytm Payments Services to terminate their nodal accounts.
More to follow.
techcrunch.com
