Restriction on Paytm Payments Bank Ltd (PPBL)by RBI, order released on jan31

Recently a news has come to light that RBI has passed a guideline on january 31 implying restrictions on Paytm Payments Bank Ltd (PPBL) Bank,which is regarding the cutback of increment in the customer account or accepting any kind of deposits,NCMC (National Common Mobility Cards),prepaid instruments post February 29,2024.

However, any cashbacks,refund and intrest may be credited anytime.

But why RBI took this action?

However In March 2022, the RBI has banned PPBL from on boarding new customers citing,After keenly observing some of the matters regarding auditing conducted by the external auditors,checking whether everything is going smoothly and transparently in compliance of the rules and guidelines passed by RBI.

After checking these all reports resulting by the audit conducted by the external auditors,a surprising matter came in light that this bank(PPBL)is not following rules and regulations as per RBI which is not a small issue.

what is going to change post february 29,2024?

yes, this date(29 february) has been fixed by Reserve Bank Of India regarding this matter of negligence of PBPL bank.so due to non compliance of the rules and guidelines of RBI which has landed the PBPL bank into troubl has resulted in freezing of the major activities of the bank.

But also,RBI has provided some exemptions regarding this matter which are cashback or refunds to customers and intrest,that can be chalked up to the customer’s account anytime.

Penalty on PBPL…

here is another trouble for PBPL for non compliance of KYC norms and certain guidelines which is 5.39crores.

Facilities to customers

However the customers of this bank have vested with some facility of using and taking out current balances from their account anytime which includes their current account,saving account,NCMB,any prepaid instruments without any prohibitions.But no one absolutely no one will be allowed to deposit or topping up their balance at bank.