Case Brief
What Happened
The Reserve Bank of India, while acting under section 35A of the Banking Regulation Act, 1949, said that Paytm Payments Bank is already subject to business restrictions and that further steps are needed because it cannot accept additional credits into customer accounts and wallets after March 15, 2024. The release directs migration of @paytm UPI handles to other PSP banks, bars new users from being added until existing users are migrated, asks NPCI to evaluate One97 Communication Ltd’s TPAP request, and says merchants using PayTM QR codes should shift settlement accounts to other PSP banks. It also reminds customers holding accounts, wallets, FASTag, and NCMC issued by Paytm Payments Bank to make alternative arrangements before March 15, 2024.