The embattled Paytm Payments Bank Ltd (PPBL) has said withdrawals of depositors money is being handled smoothly and in keeping with regulatory requirements.
Responding to a Moneycontrol query, a spokesperson of the banking arm of payments major Paytm said on February 15 the withdrawal or utilisation of customer deposits was being handled under the required regulations.
Moneycontrol had asked PPBL what was happening to the depositors money and if the bank would invest the same in government securities.
PPBL has to invest the daily deposit balances in government securities and commercial bank balances implying these deposits are safe.
"We are mandated by RBI regulations to fully invest the daily deposit balances into G-Secs, etc (75 percent) and commercial bank balances (25 percent). So withdrawal/utilization of customer balances as per RBI direction is handled smoothly as per requirement," the spokesperson said.
On January 31, the RBI imposed business restrictions on the bank citing repeated violations of norms and non-compliance with multiple rules.
The banking regulator barred PPBL from accepting fresh deposits and doing credit transactions after February 29.
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, the RBI said.
No further deposits or credit transactions or top-ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, other than any interest, cashbacks, or refunds which may be credited anytime, the RBI said.
It, however, said the withdrawal or utilisation of balance by the customers from their accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. will be allowed without any restrictions till the available balance is exhausted.
It also directed the payments bank to settle all pipeline transaction and nodal accounts by March 15 after which no transaction shall be permitted.
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