New Delhi, April 25 -- The Reserve Bank of India (RBI) on Friday scrapped the banking licence issued to Paytm Payments Bank Limited, more than two years after barring it from accepting deposits or top-ups.

The move effectively prohibits the payments bank from carrying out any banking business, following years of regulatory friction caused by persistent non-compliance. RBI has repeatedly flagged serious concerns in the bank's operations, which ultimately led to this action.

In the official statement released yesterday, the central bank said that Paytm Payments Bank's operations were conducted in a manner that was "detrimental to the interest of the bank and its depositors."

"The general character of the management of the bank is prejudi...