India, April 25 -- India's digital payments ecosystem has entered a new phase after the Reserve Bank of India cancelled the license of Paytm Payments Bank. The move follows a series of regulatory actions over the past two years, signalling stricter oversight of fintech firms.

While the decision may appear alarming at first glance, most everyday users are unlikely to face disruption. The development instead marks a structural shift in how Paytm operates its banking and payment services.

Why RBI Cancels Paytm License?

The RBI took this step after identifying continued non-compliance with regulatory norms, including lapses in customer due diligence and governance concerns. The central bank had already imposed restrictions on the bank star...