Paytm Payments Bank will not be allowed to accept deposits or undertake credit transactions
RBI restricts Paytm Payments Bank from offering new services starting March 2024, citing regulatory compliance concerns.
Paytm Payments Bank will not be allowed to accept deposits or undertake credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags and NCMC, among others, post February 29, 2024.
Other than fund transfers, utilisation or withdrawal, no other banking services and BBPOU and UPI facility should be provided by the bank after February 29, 2024, the central bank said.
Payments Bank are only allowed to accept deposits and cannot give loans, unless they partner with another regulated lender. Further, they can issue debit cards but not credit cards unless under a co-branded or co-lending arrangement with a partner bank or NBFC.