RBI removes Paytm Payments Bank from scheduled banks list after licence cancellation

RBI removes Paytm Payments Bank from Scheduled List after license cancellation

The RBI has formally removed Paytm Payments Bank from the list of scheduled banks after cancelling its banking licence over regulatory non-compliance.

Mumbai, Oct 7: The Reserve Bank has officially removed Paytm Payments Bank from the list of recognised scheduled banks following the cancellation of its banking licence.In April this year, the Reserve Bank of India (RBI) had cancelled the banking licence issued to PPBL for non-compliance with norms, saying affairs of the bank were conducted in a manner detrimental to the interest of its depositors.Later, the Delhi High Court ordered that Paytm Payments Bank Ltd (PPBL) be wound up.PPBL excluded from RBI schedule"Paytm Payments Bank Limited has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934...," the central bank said in a statement on Wednesday.A notification in this regard was published on July 31 and published in the Gazette of India in September.The Second Schedule of the RBI Act is the official list of recognised banks that meet the central bank's financial standards and get special operational privileges. 'Scheduled bank' means a bank included in the Second Schedule.GST Rules Set For Major Overhaul, Know- What Could Get Cheaper & Easier For Businesses?Bank faced regulatory scrutinyPPBL, an associate firm of Vijay Shekhar Sharma-promoted fintech firm Paytm, came under the regulatory scanner on multiple occasions earlier, including in March 2022 when the central bank barred it from onboarding new customers.While cancelling the licence, the RBI had said the affairs of the bank were conducted in a manner detrimental to its own interests as well as its depositors.Earlier, PPBL was directed to stop onboarding new customers with effect from March 11, 2022, amid "material supervisory concerns" observed in the bank.Also Watch:Business restrictions imposedThe bank was also directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system.Thereafter, on January 31, 2024, and February 16, 2024, certain business restrictions were also imposed on the bank, including disallowing any further deposits/credits/top-ups in existing customer accounts, prepaid instruments, and wallets.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/