On Saturday, March 12, Paytm Payments Bank released a statement assuring its customers that their accounts will be fully functional & deposits will be safe amid RBI orders.
Yesterday, RBI issued a notice to Paytm Payments Bank to stop onboarding new customers under section 35A of the Banking Regulation Act, 1949. Paytm stated that this will not affect the existing customers & services will not be hindered. “PPBL’s existing customers can continue to enjoy the benefits of seamless banking and digital payments services without interruption. The savings of existing users in their PPBL account, their fixed deposits with partnered banks and the balance maintained in their Paytm Wallet, FASTag or Wallet Card and UPI services are completely safe and functional,” the company stated through a blog.
RBI had further directed Paytm to conduct a comprehensive system audit of its IT system. The onboarding of new customers will resume once the RBI clears the review of the audit report. “We are taking immediate steps to comply with RBI directions. PPBL remains committed to working with the regulator to address their concerns as quickly as possible. We shall notify when we recommence the opening of new accounts after obtaining RBI approval,” the PPBL further stated.
