Overview
- The Reserve Bank of India revoked Paytm Payments Bank’s licence effective at the close of business Friday, and said it will ask the High Court to wind up the bank.
- In its order, the regulator said the bank hurt depositor interests, the management was prejudicial to the public, and the bank failed to meet licence conditions.
- RBI said the bank holds enough liquidity to repay all deposits during the wind-down, and customers can keep withdrawing existing balances as before.
- Paytm’s UPI and merchant payments are set to keep working because they now run through partner banks under a multi-bank setup approved by NPCI.
- It caps a process that stopped new sign-ups in March 2022 and barred fresh deposits and wallet top-ups in early 2024, in a sector where payments banks can take only small deposits and cannot lend.