RBI may cancel licence of Paytm Payments Bank

February 07, 2024 23:02
RBI may cancel licence of Paytm Payments Bank

(Image source from: Livemint.com)

RBI may cancel licence of Paytm Payments Bank:- The Paytm Payments Bank is facing the possibility of having its licence cancelled by the Reserve Bank of India (RBI), according to anonymous sources. The RBI has set a deadline of March 15 for the closure of the bank and settlement of transactions, and if this deadline is not met, the licence may be revoked. The RBI believes that cancelling the licence is the logical next step due to the bank's repeated non-compliance with regulations. A final decision on the licence cancellation will be made in the coming days. There are also reports of the central bank considering taking over the operations of the Paytm Payments Bank.

After February 29, the central bank will no longer accept new deposits or conduct credit transactions. They found that the bank had consistently failed to comply with regulations and had significant supervisory concerns, leading to further action. From February 29, 2024, customers will not be able to make any additional deposits or credit transactions, except for interest, cashbacks, or refunds. However, customers can still withdraw or use their account balances freely until they are depleted. On March 11, 2023, the RBI prohibited Paytm Payments Bank from acquiring new customers. On February 6, the stock of One 97 Communications, Paytm's parent company, closed at Rs 463 on the National Stock Exchange, a 2.63 percent increase after a previous decline of over 40 percent in three sessions.

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Paytm Payments Bank  RBI