New Delhi, April 24 -- The Reserve Bank of India (RBI) on Friday said it has cancelled the banking licence issued to Paytm Payments Bank Limited. With this, Paytm Payments Bank has been officially barred from conducting any banking business, following years of regulatory friction and persistent non-compliance.The RBI said on Friday it would make an application for winding up of the bank before the high court.In March 2024 was prohibited from accepting new deposits, credit transactions, or top-ups in customer accounts, wallets, FASTags, or NCMC cards.

According to Reuters, while the bank remains operational, its activities are severely limited to processing withdrawals of existing deposits and facilitating loan referrals through banking c...