The Reserve Bank of India (RBI) has halted certain services of Paytm Payments Bank due to persistent non-compliance concerns. Following an audit revealing ongoing issues, the RBI has barred the bank from onboarding new customers and stopped services like fund transfers and UPI facilities.
Existing customers can use their funds until February 29, but no further deposits or credit transactions are allowed after this date. Loans taken through Paytm remain unaffected, but merchants receiving payments via the bank will be impacted. Paytm FASTag users must obtain new tags from other issuers.