Recorded RBI impact
Extension
Business restriction · Extension
Published by RBI
16 Feb 2024
Case Brief
The Reserve Bank of India issued further directions under Section 35A of the Banking Regulation Act, 1949, in partial modification of its earlier January 31, 2024 directions against Paytm Payments Bank Ltd (PPBL). The revised order extends the cut-off for stopping fresh deposits, credit transactions, top-ups, fund transfers, BBPOU, and UPI services to March 15, 2024, while allowing customers to withdraw or use their available balances without restrictions. It also directs termination of nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd by February 29, 2024 and completion of settlement of all pipeline transactions by March 15, 2024.
Why RBI Acted
The RBI issued directions under Section 35A of the Banking Regulation Act, 1949 in partial modification of earlier directions dated January 31, 2024. The order extends the deadline for stopping fresh deposits, credit transactions, top-ups, and most banking services to March 15, 2024 (from February 29, 2024), while allowing withdrawals/utilisation of balances up to available balance. It also requires termination of nodal accounts of One97 Communications Ltd and Paytm Payments Services Ltd by February 29, 2024 and completion of settlement of pipeline transactions by March 15, 2024.
Operating Impact
PPBL must continue operating under RBI-imposed business restrictions, with no new deposits/credits/top-ups and no regular banking services beyond withdrawal/use of existing balances after March 15, 2024. Customers, merchants, and wallet users must make alternative arrangements, and nodal-account settlements must be completed within the stated timelines.
Regulatory Basis
- Section 35A of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Extension
- Order Date
- 31 Jan 2024
- Effective From
- 15 Mar 2024
- Entities Affected
- 1
- Entity Role
- Bulk Member
- Entity Type
- Payment entity
Related Entities
Entities similar to PPBL