RBI order on Paytm: Important Information for Paytm Payments Bank Customers Regarding RBI's Directive

RBI order on Paytm: On February 1, 2024, the stock price of Paytm experienced a significant decline, dropping by 20%. The day concluded with the stock closing at 761 per share. As of now, the stock is being traded at 608.8 per share. Investors are advised to keep a close eye on Paytm's stock price in the upcoming days and weeks to observe its response to the recent developments.

The RBI has instructed the closure of the 'nodal accounts' belonging to One97 Communications Ltd and Paytm Payments Services. This action is required to be completed no later than February 29, 2024.

On Wednesday, the Reserve Bank of India (RBI) directed Paytm Payments Bank to refrain from accepting new customers. Additionally, the bank is instructed not to engage in further deposits or credit transactions after February 29 of this year.

Important Information for Paytm Users: Five Key Facts to Be Aware Of

After February 29, 2024, customers will not be able to make additional deposits, credit transactions, or top-ups in any accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. Exceptions include the crediting of interest, cashbacks, or refunds, which may occur at any time.

The Reserve Bank of India (RBI) has implemented certain restrictions on Paytm Payments Bank Limited (PPBL) as of February 29, 2024. Customers are allowed to withdraw or utilize balances from their various accounts, such as savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., without any restrictions, as long as it does not exceed their available balance.

However, after February 29, 2024, PPBL will not provide any banking services beyond the mentioned account withdrawals and utilization of balances. This includes fund transfers (such as AEPS, IMPS, etc.), BBPOU, and UPI facility. The Nodal Accounts of One97 Communications Ltd and Paytm Payments Services Ltd. are also mandated to be terminated no later than February 29, 2024.

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