The Reserve Bank of India (RBI) is considering canceling the operating license of Paytm Payments Bank early next month after ensuring the safety of depositors.
The problems of online payment app Paytm are increasing. 2 days ago, the Reserve Bank of India (RBI) has banned Paytm Payments Bank from taking credit transactions and any kind of deposit. At the same time, after ensuring the safety of the depositors, RBI is considering canceling the operating license of Paytm Payments Bank early next month. People with knowledge of the matter have given this information to Bloomberg.
Due to RBI action, Paytm shares went on strike for the second consecutive day on Friday (February 2) and came to the lower circuit. Lower circuit means that there are no buyers for its shares in the market.
RBI may take action after February 29
Sources told Bloomberg that the RBI may take action after the February 29 deadline. Violations include misuse of customer documentation rules and non-disclosure of material transactions.
No final decision yet
Sources said that no final decision has been taken yet and RBI’s thinking may change based on Paytm’s representation. RBI has not yet responded to the email.
Paytm Payments Bank’s answer
A Paytm Bank spokesperson said that the recent RBI directive is “part of the ongoing supervisory engagement and compliance process. The spokesperson said that the bank has also paid attention to the compliance and supervisory instructions of RBI.