04 March 2024
With less than two weeks to go for Paytm Payments Bank Limited (PPBL) to cease operations, the Reserve Bank of India (RBI) may take the unprecedented step of revoking the banking license, the Hindu Business Line has said. If it does go ahead, it would be the first time in more than 20 years that the banking regulator would take such an action. An administrator might be appointed to oversee critical aspects of the bank's operations, the report said. According to a source, the RBI's decision could be prompted by repeated instances of failed due diligence on the part of the banking arm of the payments major Paytm, the report said.
On March 1, One97 Communications (OCL), the parent company of Paytm, announced that its board had approved the discontinuation of several inter-company agreements with Paytm Payments Bank. On January 31, the RBI imposed business restrictions on the bank citing repeated violations of norms and non-compliance with multiple rules. The banking regulator barred PPBL from accepting fresh deposits and doing credit transactions after February 29.
With less than two weeks to go for Paytm Payments Bank Limited (PPBL) to cease operations, the Reserve Bank of India (RBI) may take the unprecedented step of revoking the banking license, the Hindu Business Line has said. If it does go ahead, it would be the first time in more than 20 years that the banking regulator would take such an action. An administrator might be appointed to oversee critical aspects of the bank's operations, the report said. According to a source, the RBI's decision could be prompted by repeated instances of failed due diligence on the part of the banking arm of the payments major Paytm, the report said.
On March 1, One97 Communications (OCL), the parent company of Paytm, announced that its board had approved the discontinuation of several inter-company agreements with Paytm Payments Bank. On January 31, the RBI imposed business restrictions on the bank citing repeated violations of norms and non-compliance with multiple rules. The banking regulator barred PPBL from accepting fresh deposits and doing credit transactions after February 29.
Stay Connected, Stay Informed –
Don’t miss out on exclusive updates, market trends, and real-time investment opportunities. Be the first to know about the latest unlisted stocks, IPO announcements, and curated Fact Sheets, delivered straight to your WhatsApp.