RBI imposes restrictions on Paytm Payments Bank

  • RBI imposes restrictions on Paytm Payments Bank from March 2024.
  • Action taken due to concerns about regulatory norm breaches and persistent non-compliance.
  • Paytm Payments Bank prohibited from accepting deposits, credit transactions, or top-ups after February 29, 2024.
  • Interest, cashback, and refunds allowed, but unrestricted withdrawal and utilization of balances permitted.
  • No provision of banking services, BBPOU, and UPI facilities after February 29, 2024, except for fund transfers, utilization, or withdrawal.
  • Nodal accounts of parent companies to be terminated by February 29, 2024.
  • Settlement of pipeline transactions and nodal accounts related to transactions initiated before February 29, 2024, must be completed by March 15, 2024.

Q: Which payment bank faced restrictions from RBI for “Breach of regulatory norms and non-compliance”?

a. Airtel Payments Bank
b. Fino Payments Bank
c. Paytm Payments Bank
d. Jio Payments Bank

Answer: c. Paytm Payments Bank

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