![\"Paytm](\"https:\/\/c.ndtvimg.com\/2024-01\/faj9ieg8_upi-payments-generic_625x300_31_January_24.jpg?im=FaceCrop,algorithm=dnn,width=1200,height=738\"\/ "\\"Paytm")
<\/div>\n<\/div>\nNew Delhi: <\/b><\/p>\n
The Reserve Bank of India<\/a> on Wednesday barred Paytm Payments Bank Ltd from accepting deposits or allowing credit transactions, or top-ups, in customer accounts or prepaid instruments – such as wallets and FASTags – linked to those accounts, after February 29.<\/p>\n Customers can, however, continue to utilise balances from their accounts, including savings and current “without restriction (and) up to their available” limit, the Reserve Bank order said.<\/p>\n In addition, the nodal accounts of Paytm’s parent company, One97 Communications Ltd., and Paytm Payments Bank Ltd., or PBBL, have been terminated by the central bank.<\/p>\n The RBI’s order cited “persistent non-compliances and continued material supervisory concerns in the bank” that were flagged after a comprehensive audit of its systems by external parties.<\/p>\n It is understood this order does not affect Paytm’s Unified Payment Interface, or UPI, arm.<\/p>\n Neither the company nor its founder\/CEO, Vijay\u00a0Shekhar Sharma, have responded so far.<\/p>\n All of this follows a March 2022 order in which PBBL was directed to stop taking onboard new customers “with immediate effect”.<\/p>\n Essentially the RBI action is against the banking operations of\u00a0Paytm<\/a>, meaning customers can continue to use Paytm as a digital payment option so long as their account is linked to an external bank.<\/p>\n In December, One97 Communication laid off hundreds of employees across verticals after it began using AI, or Artificial Intelligence, to automate certain processes in a bid to up cost-cutting.<\/p>\n READ |\u00a0<\/strong>Paytm Lays Off 100s After Induction Of AI To Cut Costs<\/a><\/p>\n The use of AI is meant to reduce costs, improve efficiency of operations, and remove redundant tasks, the firm said.<\/p>\n<\/div>\n