BENGALURU (Reuters) – The Reserve Bank of India on Wednesday restricted Paytm Payments Bank Ltd from taking fresh deposits and credit transactions across its services, due to non-compliance of regulations and supervisory concerns.
An audit report revealed “persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action,” the central bank said in a release.
Paytm Payments Bank will not be allowed to take further deposits in any customer accounts after Feb. 29, the RBI said.
It added that no credit transactions will be allowed either, including via wallets.
The withdrawal or utilisation of balances by its customers will be permitted without restrictions, the central bank said.
(Reporting by Indranil Sarkar in Bengaluru and Ira Dugal in Mumbai; Editing by Savio D’Souza)
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