The Reserve Bank of India has cancelled the licence of Paytm Payments Bank over regulatory violations, bringing its operations to a complete halt.
The decision follows earlier actions taken by the central bank, including restrictions imposed in 2022 on adding new customers and further limits in 2024 on accepting deposits. With the latest move, all banking services of Paytm Payments Bank have now been stopped.
According to official statements, the action was taken due to non-compliance with regulatory norms. The RBI has been monitoring the bank’s operations and had issued multiple directions in the past to address concerns.
The central bank has assured customers that their deposits are safe and will be refunded in accordance with existing rules. Necessary steps are being taken to ensure that customers can access their funds without disruption.
The development marks a significant regulatory action in the banking sector, with authorities focusing on compliance and accountability.
The RBI’s assurance on customer funds provides clarity and helps maintain confidence in the financial system.
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