New Delhi: The Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Limited, directing the entity to stop all banking operations with immediate effect.
In a statement, the central bank said the bank is no longer permitted to carry out any business activities. It added that the institution has adequate liquidity to repay its depositors as part of the winding-up process.
The action follows earlier regulatory measures, including a March 2022 directive restricting onboarding of new customers and additional curbs imposed in early 2024, which barred deposits, credits, and wallet top-ups in existing accounts.
The Reserve Bank of India stated that these steps were taken after continued supervisory concerns and non-compliance with regulatory requirements.
