In a statement, the central bank disclosed that an audit report exposed ongoing violations and significant supervisory issues in the bank, necessitating additional regulatory measures (RBI limits Paytm Payments Bank).
On the recent developments concerning Paytm Payments Bank Ltd, the Reserve Bank of India (RBI) implemented stringent measures on Wednesday, restricting the bank from accepting new deposits and participating in credit transactions across its services (RBI limits Paytm Payments Bank).
This decisive action was prompted by the bank’s failure to comply with regulatory requirements and persistent concerns highlighted in a comprehensive audit report.
The audit report uncovered ongoing non-compliance and significant supervisory issues within the bank, prompting the RBI to take immediate action. In response to these findings, the central bank underscored the imperative for additional supervisory measures to address and rectify the identified issues, emphasizing the importance of regulatory compliance and prudent banking practices.
Effective February 29, the RBI’s directive dictates that Paytm Payments Bank must cease accepting fresh deposits in any customer accounts. Furthermore, all forms of credit transactions, including those facilitated through wallets, are strictly prohibited.
Despite these restrictions, customers retain the ability to withdraw funds from their accounts or utilize their balances without encountering any limitations, according to the central bank’s official statement.
The regulatory intervention reflects the RBI’s commitment to ensuring the stability and integrity of the banking system, underscoring the significance of adherence to established regulations and the prompt resolution of supervisory concerns within financial institutions (RBI limits Paytm Payments Bank).
Paytm Payments Bank is now tasked with addressing these issues under the scrutiny and guidance of the RBI to restore compliance and uphold the standards of sound banking practices.
