Reserve Bank of India(RBI) places additional curbs on Paytm Payments Bank(PPB) | Current Affairs | Vision IAS
    • VisionIAS Logo
    News Today Logo
    SUN MON TUE WED THU FRI SAT
    1 2 3 4 No article 5 6 7 8 9 10 11 No article 12 13 14 15 16 17 18 No article 19 20 21 22 23 24 25 No article 26 27 28 29

    Table of Content

    Reserve Bank of India(RBI) places additional curbs on Paytm Payments Bank(PPB)

    Posted 01 Feb 2024

    Updated 16 Mar 2024

    2 min read

    • PPB will not take fresh deposits in any customer accounts, prepaid instruments, wallets, FASTags etc., after February 29, 2024.
    • RBI exercised its powers under section 35A of the Banking Regulation Act of 1949.
      • RBI has taken action due to persistent non-compliance observed by external auditors and material supervisory concerns in the PPB.
      • RBI has broad powers to issue direction in the public interest or in the interest of banking policy under the act.

     

    • Payment banks: The Nachiket Mor committee suggested the introduction of specialised banks or ‘payments banks’ with the objective of financial inclusion.
      • They have to register as a Public Limited Company and obtain a license as per the Banking Regulation Act 1949.
      • They can carry out most banking operations but can’t advance loans or issue credit cards.
      • They can take deposits up to 2 lakh, issue debit cards, and provide mobile and internet banking facilities.

     

    • Challenges with payment banks
      • Lack of avenues for earning of revenue since they cannot lend
      • The need for a digital presence demands high investment in digital infrastructure
      • Competition from traditional banks offering mobile banking services, unified payments interface, etc.
    • Tags :
    • RBI
    • Payment Bank
    • Paytm Payment Bank
    Next Article
    Boost for Female Workforce Participation
    Watch News Today
    Download News Today