The country’s central bank Reserve Bank of India has barred fintech major Paytm from offering all forms of banking services to its customers. The RBI said that the action against One 97 Communications, which runs Paytm, was due to "non-compliance and continued material supervisory concerns in the bank."The new restriction applied by RBI may lead to several services offered by the platform becoming inoperable. Here are the services that will work and those that will not.
RBI said that the Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, warranting further supervisory action.
The central bank on January 31 said that Paytm Payments Bank will not be allowed to accept fresh deposits, undertake credit transactions, or top-ups in any customer accounts. This also includes prepaid instruments, wallets, FASTags, and NCMC cards, among others
Onboarding of new customers by Paytm Payments Bank will be subject to specific permission to be granted by RBI after reviewing reports of the IT auditors.