RBI Revokes Paytm Payments Bank Licence Over Regulatory Lapses
India's central bank has revoked the payments bank licence held by Paytm Payments Bank Limited, citing significant regulatory violations and non-compliance issues. The Reserve Bank of India determined that the institution failed to maintain adequate governance standards and customer protection measures required for operations. This action marks a major setback for Paytm's financial services division and raises questions about oversight in India's fintech sector. The revocation will impact millions of customers who rely on Paytm for digital payments and banking services. Paytm has been directed to cease payments bank operations and wind down its business in an orderly manner.
