RBI takes motion in opposition to Paytm Funds Financial institution Ltd by Banking Rules Act, says press launch

The Reserve Financial institution of India, in train of its powers underneath Part 35A of the Banking Regulation Act, 1949, had put sure enterprise restrictions on Paytm Funds Financial institution Ltd (PPBL or the financial institution), vide Press Releases dated March 11, 2022 and January 31, 2024.

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2. Retaining in view the curiosity of consumers (together with retailers) of PPBL who might require somewhat extra time to make different preparations and the bigger public curiosity, the next Instructions are issued by the Reserve Financial institution of India underneath part 35A of the Banking Regulation Act, 1949 in partial modification of the sooner Instructions dated January 31, 2024:

(i) No additional deposits or credit score transactions or high ups shall be allowed in any buyer accounts, pay as you go devices, wallets, FASTags, Nationwide Widespread Mobility Playing cards, and many others. after March 15, 2024 (prolonged from the sooner stipulated timeline of February 29, 2024), apart from any curiosity, cashbacks, sweep in from associate banks or refunds which can be credited anytime.

(ii) Withdrawal or utilisation of balances by its prospects from their accounts together with financial savings financial institution accounts, present accounts, pay as you go devices, FASTags, Nationwide Widespread Mobility Playing cards, and many others. are to be permitted with none restrictions, upto their obtainable stability (no change).

(iii) No banking companies, apart from these referred in (ii) above, like fund transfers (no matter title and nature of companies like AEPS, IMPS, and many others.),

BBPOU and UPI facility ought to be supplied by the financial institution after March 15, 2024 (prolonged from the sooner stipulated timeline of February 29, 2024). Nonetheless, for the aim of (ii) above (viz. for withdrawal or utilisation of obtainable stability by prospects or pockets holders), such fund transfers together with AEPS, IMPS and UPI could also be allowed anytime.

(iv) The Nodal Accounts of One97 Communications Ltd and Paytm Funds Companies Ltd maintained by Paytm Funds Financial institution Restricted are to be terminated on the earliest, in any case not later than February 29, 2024 (no change).

(v) Settlement of all pipeline transactions in nodal accounts referred to in merchandise (iv) above (in respect of all transactions initiated on or earlier than February 29, 2024) shall be accomplished by March 15, 2024 and no additional transactions shall be permitted thereafter (no change).

3. Additionally it is directed that withdrawals upto their obtainable stability ought to be facilitated by the financial institution from all accounts and wallets, excluding those which can be frozen or lien marked by Legislation Enforcement or judicial authorities.

4. Additional, it’s directed that the financial institution shall facilitate a seamless withdrawal of buyer deposits which can be parked with associate banks underneath the automated ‘sweep-in sweep-out’ facility with out inflicting any inconvenience to such prospects.

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5. An inventory of Continuously Requested Questions (FAQs), for the comfort of the shoppers of PPBL, and most of the people at massive, can be issued herewith.