New Delhi, April 28 -- On Monday, shares of One97 Communications Ltd, which operates Paytm, fell more than 8% intraday before trimming losses to close 1% lower at Rs.1,137.80 apiece on the National Stock Exchange. The decline followed the Reserve Bank of India's (RBI) cancellation of Paytm Payments Bank Ltd's (PPBL) licence.

But what triggered the action, and what does it mean for India's fintech major? Mint breaks it down.

PPBL, launched in May 2017, had long been under regulatory scrutiny over its operational structure and dependence on its parent's technology systems and data-sharing arrangements.

Over time, RBI flagged concerns including breaches of deposit limits and weak know-your-customer (KYC) controls, which it said weakened s...