RBI Revokes Paytm Payments Bank Licence: Compliance Failures Trigger Action
The RBI has revoked the banking licence of Paytm Payments Bank due to non-compliance with regulatory norms. As a result, the bank faces winding up proceedings and cannot conduct banking operations. Paytm assured that its other services remain unaffected despite the severance of ties with its associate firm.
- Country:
- India
The Reserve Bank of India (RBI) announced Friday the cancellation of Paytm Payments Bank's banking licence due to non-compliance with regulations, citing actions detrimental to depositor interests. This decision will initiate winding up proceedings for the bank.
One97 Communications, Paytm's parent company, reported no financial exposure to Paytm Payments Bank as they had impaired their investment by March 2024. This action marks a culmination of regulatory scrutiny, including a 2022 restriction on new customer onboarding.
Although Paytm Payments Bank is halted from banking activities, Paytm confirmed that its range of services, including UPI and other financial tools, will continue without disruption.
(With inputs from agencies.)
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