Synopsis
In a release, the central bank said Paytm Payments Bank can no longer conduct banking business under the Banking Regulation Act.Listen to this article in summarized format
In a release, the central bank said Paytm Payments Bank can no longer conduct banking business under the Banking Regulation Act.
It said the bank’s affairs and management were not in the interest of depositors or the public, adding that the bank failed to follow the conditions of its Payments Bank licence.
Earlier, the bank had already been barred from onboarding new customers from March 11, 2022, and later faced restrictions on deposits, credits, and top-ups in customer accounts and wallets.
In January 2024, the Reserve bank of India had ordered the bank to stop accepting fresh deposits 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 on Friday it would make an application for winding up of the bank before the high court.
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.
