Paytm Payments Bank-Licence cancelled

The recent decision by the Reserve Bank of India (RBI) to cancel the licence of Paytm Payments Bank marks a significant moment do display those regulations and compliances are as important as growth in India’s evolving fintech and banking landscape. But to truly understand its implications, we must understand what payments banks are, how they differ from commercial banks, and what led to this drastic regulatory action?
What Happened with Paytm Payments Bank?
During 2018 RBI scrutinized the transactions carried out by the Paytm Payment Bank and observed major deficiencies, specially in onboarding of customer. Major flaw was onboarding multiple customers on a single PAN. This was a straight Operational Risk failure. Considering the loopholes in the Risk, Compliance and Audit functions (referred to as Assurance Function), in 2022, RBI imposed a bar on onboarding fresh customers. By 2024, RBI imposed restriction on taking new deposits. With a span of 4 years, the bank could not improve its internal control and the fresh business also stopped due to regulatory guidelines, resulting into losses. RBI decided now in 2026 to cancel the banking license and stop the operations
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Видео Paytm Payments Bank-Licence cancelled канала Sayed Azhar Hasan