RBI removes Paytm Payments Bank from list of scheduled banks
In April this year, the Reserve Bank of India had cancelled the banking licence issued to Paytm Payments Bank for non-compliance with norms, saying affairs of the bank were conducted in a manner detrimental to the interest of its depositors.
The Reserve Bank of India (RBI) has removed Paytm Payments Bank Ltd (PPBL) from the list of scheduled banks following the cancellation of its banking licence. In April, the RBI revoked PPBL's banking licence due to non-compliance with regulations, alleging that the bank's operations were detrimental to its depositors' interests.
A Delhi High Court subsequently ordered the winding up of PPBL. Following this, Paytm Payments Bank Limited was excluded from the Second Schedule to the Reserve Bank of India Act, 1934, the official list of recognised banks with special privileges. The RBI's decision was announced in a statement on Wednesday, with a notification published on July 31 and in the Gazette of India in September.
The Second Schedule outlines banks meeting the central bank's financial criteria. PPBL, an associate of fintech firm Paytm, had faced multiple regulatory concerns, including being barred from onboarding new customers in March 2022. The RBI had also previously directed PPBL to halt new customer sign-ups and conduct a comprehensive IT audit.
Further business restrictions were imposed in January and February 2024, including stopping deposits, credits, and top-ups for existing accounts and wallets.
Written by urgent.news from YourStory's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- RBI removes Paytm Payments Bank from list of scheduled banks economictimes.indiatimes.com
- Payments income bolsters banks paymentsdive.com
