RBI Revokes Paytm Payments Bank License Over Management Concerns
The Reserve Bank of India revoked Paytm Payments Bank's license, citing management actions against depositor and public interest. The bank must halt operations while ensuring liquidity for depositor repayment. Efforts to onboard new customers have been suspended from March 11, 2022.
- Country:
- India
The Reserve Bank of India (RBI) announced the cancellation of Paytm Payments Bank's operating license due to managerial issues deemed harmful to the bank and its depositors. This decision effectively prohibits the bank from conducting any banking business.
The RBI highlighted that the bank's management adversely affected both depositor and public interest. As a result, RBI plans to petition the high court for a formal winding-up of the bank.
Despite the license termination, Paytm Payments Bank reportedly holds sufficient liquidity to fulfill all deposit liabilities. Importantly, the RBI has suspended the bank's ability to onboard new customers since March 11, 2022.
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