Topics
Latest
AI
Amazon
Image Credits:Nasir Kachroo / NurPhoto / Getty Images
Apps
Biotech & Health
Climate
Image Credits:Nasir Kachroo / NurPhoto / Getty Images
Cloud Computing
commercialism
Crypto
Enterprise
EVs
Fintech
fund raise
gadget
stake
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
concealment
Robotics
security system
societal
Space
startup
TikTok
transport
speculation
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
The Reserve Bank of India ( RBI ) widen its curbs on Paytm ’s Payments Bank , which process transactions for financial services giant Paytm , barring it from extend many banking services , including accept fresh bank deposit and deferred payment dealings across its Service .
Wednesday ’s move , which run into upshot February 29 , follows the Indian central bank ordering Paytm Payments Bank to hold on accepting new client bill in 2022 , a curb it maintains . RBI said a comprehensive audit by external auditors find “ unyielding ” noncompliances and “ continued corporeal supervisory concerns ” in the bank . The noncompliance , RBI say , warranted “ further supervisory action . ”
The full extent of RBI ’s new direction remains ill-defined for now , but industry executives cautioned that it could severely disrupt Paytm ’s offline merchandiser line of work as well as the gateway business . RBI ’s novel directive “ for all hardheaded purposes . . . ends the operations of Paytm Payments Bank , ” Bernstein analysts wrote in a note . “ This is a definite electronegative growth and adds to the already enceinte regulative overhang on the business . ”
One97 Communications , the parent firm of Paytm , own a 49 % bet in Payment Payments Bank . A requital camber license give up the bearer to offer a number of banking services , though some limitation are in place .
The RBI also direct One97 Communications and Paytm Payments Services toterminate their nodal accounts“at the earliest . ” Without the nodal account , Paytm will likely have to move many of its line to other camber , according to preliminary assessment by diligence executive .
“ Settlement of all pipeline transactions and nodal accounts ( in respect of all transactions initiated on or before February 29 , 2024 ) shall be fill in by March 15 , 2024 and no further transactions shall be permitted thereafter , ” RBI added .
customer can continue to withdraw and employ money from their accounts , RBI read . Paytm Payments Bank will also not be let to offer deferred payment proceedings , including via wallets , RBI suppose .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
In 2022 , RBI slapped Paytm Payments Bank with penalties after find that the Noida - headquarter firm had violated rules by allowing datum to menstruate to servers outside of India and did n’t properly verify its customers .
