RBI cancels banking licence of Paytm Payments Bank
The Reserve Bank of India has cancelled the banking licence issued to Paytm Payments Bank Limited. In a statement, the RBI said the bank is prohibited to conduct any business from immediate effect. The apex bank has, however, clarified that Paytm Payments Bank Limited has enough liquidity to repay its entire deposit liability upon winding up operations.
RBI further informed that the action follows its orders dated March 2022 wherein the bank was directed to stop onboarding of new customers, followed by additional business restrictions imposed in early 2024, disallowing any further deposits/credits/top-ups in existing customer accounts, prepaid instruments, etc.
Paytm Payments Bank Limited has enough liquidity to repay its entire deposit liability upon winding up of the bank.
The Reserve Bank cancelled the licence of the Paytm Payments Bank Limited as:
Previously, the bank was directed to stop onboarding of new customers with effect from March 11, 2022. Thereafter, on January 31, 2024 and February 16, 2024, certain business restrictions were also imposed on the bank which, inter alia, disallowed any further deposits/credits/ top-ups in existing customer accounts, prepaid instruments, wallets, etc.
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