RBI Cancels Paytm Payments Bank Licence, Cites Serious Governance Failures
The Reserve Bank of India has cancelled the licence of Paytm Payments Bank, citing mismanagement and risks to depositors and public interest. The bank is barred from operations, and the RBI will seek its wind-up in court, adding it has enough liquidity to repay all depositors.
RBI Cancels Paytm Payments Bank Licence, Cites Serious Governance Failures | Image: Wikipedia (Representative)
Mumbai: The Reserve Bank of India on Friday said it has cancelled the banking licence issued to Paytm Payments Bank.
The licence was cancelled as the "affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors", the RBI said in a statement.
"The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest," it said.
ALSO READ
Consequently, Paytm Payments Bank is prohibited from conducting any "banking" business, it said.
The RBI also said it will make an application to the high court to wind up the bank.
"Paytm Payments Bank Limited has enough liquidity to repay its entire deposit liability upon winding up of the bank," it said.
Paytm Payments Bank has been barred from onboarding new customers with effect from March 11, 2022.
RECENT STORIES
-
-
-
-
-