RBI pulls plug on Paytm Payments Bank, cites depositor risk

The Reserve Bank of India (RBI) on Friday cancelled the licence of Paytm Payments Bank, more than two years after regulatory orders brought its operations to a halt, stating that its continuation served no public interest and was detrimental to depositors’ interests.

“Consequently, Paytm Payments Bank is prohibited from conducting the business of ‘banking’ as defined in Section 5(b) or any additional business specified under Section 6 of the Banking Regulation Act, 1949 with immediate effect,” the RBI said in its order.