The Reserve Bank of India (RBI) has cancelled the banking licence issued to Paytm Payments Bank Ltd., citing regulatory violations.
The licence was revoked more than two years after the RBI imposed business curbs on the bank in January 2024, citing non-compliance with rules on customer due diligence, use of funds and technology infrastructure.
Paytm Payments Bank, backed by One97 Communications Ltd., will now face winding-up proceedings in the high court, the RBI announced on Friday.
The bank remains operational but its activities are severely limited, allowing only withdrawals of existing deposits and facilitating loan referrals through banking correspondents.
