India, April 24 -- In a dramatic move, the Reserve Bank of India has revoked the banking licence of Paytm Payments Bank, ordering an immediate halt to operations.

The central bank said the lender has sufficient funds to repay depositors during the winding-up process, attempting to reassure customers amid the shock decision.

Final blow after years of warnings

This marks the final step in a long regulatory crackdown that began in 2022.

The RBI had already barred the bank from onboarding new customers and accepting deposits. Restrictions were tightened further in 2024 as concerns over governance and compliance continued to mount.

'Against depositors' interests': RBI's strongest charge yet

In a scathing assessment, the RBI said the bank...