Why did RBI cancel Paytm payment bank’s banking license? All you need to know

The Reserve Bank of India (RBI) on Friday scrapped the banking licence issued to Paytm Payments Bank Limited, more than two years after barring it from accepting deposits or top-ups.

The move effectively prohibits the payments bank from carrying out any banking business, following years of regulatory friction caused by persistent non-compliance. RBI has repeatedly flagged serious concerns in the bank’s operations, which ultimately led to this action.