Reserve Bank of India (RBI) Deputy Governor Swaminathan J on February 8 said the partnerships with Paytm Payments Bank will be a prerogative of banks.
“It is a business decision for other banks (if they want to partner with Paytm Payments Bank),” Swaminatah said during the post-policy press conference.
On January 31, the RBI imposed major business restrictions on Paytm Payments Bank Ltd (PPBL), including a ban on accepting fresh deposits.
The RBI on January 31 said it had imposed business restrictions on Paytm Payments Bank. The central bank said a comprehensive system audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.
On March 11, 2022, the RBI had for the second time barred Paytm Payments Bank from taking on new customers, saying that it had violated know your customer or KYC norms.
No further deposits or credit transactions or top-ups are allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc., after February 29, other than any interest, cashbacks or refunds that may be credited anytime, the RBI said.
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