RBI cancels Paytm Payments Bank licence
While the bank remains operational, its activities are severely limited to processing withdrawals of existing deposits and facilitating loan referrals through banking correspondents, according to its website.
The Reserve Bank of India said Friday that it has cancelled the banking licence issued to Paytm Payments Bank Limited, over two years after it imposed business curbs over violations.
While the bank remains operational, its activities are severely limited to processing withdrawals of existing deposits and facilitating loan referrals through banking correspondents, according to its website. It cannot take fresh deposits.
Paytm had obtained a limited banking license in August 2015 (backed by One 97 Communications, which once counted China’s Ant Group and Japan’s SoftBank as investors) that allowed it to take small deposits but not give out loans.
The RBI had ordered the bank to stop accepting fresh deposits in January 2024, due to, what it said at the time, non-compliance with rules, including on customer due diligence, use of funds and technology infrastructure. The RBI said it would make an application for winding up of the bank before the high court.
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The Reserve Bank of India said Friday that it has cancelled the banking licence issued to Paytm Payments Bank Limited, over two years after it imposed business curbs over violations.
While the bank remains operational, its activities are severely limited to processing withdrawals of existing deposits and facilitating loan referrals through banking correspondents, according to its website. It cannot take fresh deposits.
Paytm had obtained a limited banking license in August 2015 (backed by One 97 Communications, which once counted China’s Ant Group and Japan’s SoftBank as investors) that allowed it to take small deposits but not give out loans.
The RBI had ordered the bank to stop accepting fresh deposits in January 2024, due to, what it said at the time, non-compliance with rules, including on customer due diligence, use of funds and technology infrastructure. The RBI said it would make an application for winding up of the bank before the high court.
