Paytm Payment Bank customers advised to arrange for the credit of their salaries before March 15

19 Feb 2024 , 10:27 AM

On February 16, the Reserve Bank of India (RBI) stated in its Frequently Asked Questions (FAQ) that Paytm Payments Bank users should make alternate arrangements with another bank for salary credit by March 15.

‘After March 15, 2024, you will not be able to receive such credits on your Paytm Payments Bank account. It is recommended that you make alternate arrangements with another bank by March 15, 2024, to minimise difficulty.’

On January 31, the RBI placed significant business limitations on Paytm Payments Bank, including a ban on receiving new deposits and conducting credit transactions beyond February 29.

The regulator discovered significant inconsistencies in KYC, exposing clients, depositors, and wallet holders to considerable risks.

The RBI said on January 31 that it has put business limitations on Paytm Payments Bank. The central bank stated that a detailed system audit report and following compliance validation report from external auditors identified chronic non-compliances and serious supervisory issues in the bank, necessitating additional supervisory action.

On March 11, 2022, the RBI stopped Paytm Payments Bank from accepting new clients for the second time, citing a violation of know your customer (KYC) requirements.

The RBI stated that after February 29, no additional deposits, credit transactions, or top-ups are permitted in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, and so on, with the exception of any interest, cashbacks, or refunds that may be credited at any time.

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