Goa, April 25 -- The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Ltd (PPBL), effective from the close of business on April 24. The decision follows more than two years of regulatory scrutiny, during which the central bank had already imposed multiple restrictions on the entity, including a ban on accepting fresh deposits in 2024.

According to the RBI, the action was taken because the bank's operations were considered "detrimental" to depositors and the broader public interest. The regulator highlighted serious compliance lapses, particularly in areas such as customer due diligence, risk management, and corporate governance. These concerns ultimately led to the cancellation of the licence, marking ...