SRINAGAR: The Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Limited, effectively prohibiting it from carrying out any banking business with immediate effect.
In an official statement, the central bank said the entity is no longer permitted to operate as a bank. However, it assured depositors that Paytm Payments Bank has sufficient liquidity to repay its entire deposit liabilities as part of the winding-up process.
The RBI clarified that the action is a culmination of sustained regulatory concerns. It referred to its March 2022 directive that barred the bank from onboarding new customers, followed by stricter restrictions imposed in early 2024. These included a ban on further deposits, credit transactions, and top-ups in customer accounts and prepaid instruments. -(Agencies)
