New Delhi, April 24 -- The Reserve Bank of India (RBI) on Friday cancelled the licence of Paytm Payments Bank, more than two years after regulatory orders brought its operations to a halt, stating that its continuation served no public interest and was detrimental to depositors' interests.

"Consequently, Paytm Payments Bank is prohibited from conducting the business of 'banking' as defined in Section 5(b) or any additional business specified under Section 6 of the Banking Regulation Act, 1949 with immediate effect," the RBI said in its order.

The bank had started operations in May 2017.

Payments banks were conceptualized as a separate category in 2015 to reach the under-banked and unbanked masses, accepting deposits of up to Rs.2 lakh ...