RBI Revokes Paytm Payments Bank License Over Management Concerns

The Reserve Bank of India (RBI) announced the cancellation of Paytm Payments Bank's operating license due to managerial issues deemed harmful to the bank and its depositors. This decision effectively prohibits the bank from conducting any banking business.

The RBI highlighted that the bank's management adversely affected both depositor and public interest. As a result, RBI plans to petition the high court for a formal winding-up of the bank.

Despite the license termination, Paytm Payments Bank reportedly holds sufficient liquidity to fulfill all deposit liabilities. Importantly, the RBI has suspended the bank's ability to onboard new customers since March 11, 2022.

(With inputs from agencies.)