The Reserve Bank of India has taken action against Paytm Payments Bank by ordering the bank to refrain from onboarding new clients. This action is in response to the Comprehensive System Audit report and the external auditors’ following compliance validation report, which both documented ongoing non-compliance and demanded more action.
The bank said, “After February 29, 2024, no additional deposits, credit transactions, or top-ups will be permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., except for any interest, cashback, or refunds that may be credited at any time.”
What Is Payments Bank?
A payments bank is a type of financial services provider that cannot take more than ₹2 lakh in deposits for each account. Direct lending is not allowed, in contrast to typical banks. It can, however, support loan products from other sources in addition to selling its loan products.
What Happens To Your Paytm FASTag After February 29?
The RBI has indicated that users who have balances in their wallets, accounts, or FASTags are free to continue withdrawing or using their money without any limitations. Paytm FASTag users have been allowed by the RBI to empty their balances; but, from March 1, they are not able to add further money to their accounts.
How To Transfer Money From Paytm Wallet To Bank Account
- Step 1: First open the Paytm app.
- Step 2: Select the services tab to access your Paytm wallet.
- Step 3: Select the available option to transfer funds to a bank.
- Step 4: Click to continue after entering the information.
- Step 5: Information includes the account number, IFSC code, and account holder’s name.
- Step 6: Enter the OTP that was sent to the phone number you registered.
- Step 7: The funds will be credited to the bank account following the successful OTP verification.