RBI Cancels Banking License of Paytm Payments Bank

Mumbai: The Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Limited, prohibiting it from conducting any business with immediate effect. The central bank clarified that the bank has sufficient liquidity to repay its entire deposit liability during the winding-up process.

According to RBI, the action follows earlier regulatory measures, including its March 2022 directive barring the bank from onboarding new customers. This was followed by stricter restrictions in early 2024, which stopped further deposits, credits, and top-ups in existing customer accounts and prepaid instruments, among other limitations.