In case the RBI revokes the licence, it could be the primary such occasion within the banking sector in 20 years. (Representative picture)
The RBI has taken under consideration diligence failure on the a part of Paytm Payments Bank on no less than 4 events
The Reserve Bank of India (RBI) is more likely to cancel the banking licence of disaster-hit Paytm Payments Bank, in keeping with a Hindu Business Line report on Monday. Apart from revoking the licence, the report stated, the RBI can be more likely to appoint an administrator to supervise the day by day operations.
In case the RBI revokes the licence, it could be the primary such occasion within the banking sector in 20 years.
According to the Hindu Business Line report, the RBI has taken under consideration diligence failure on the a part of Paytm Payments Bank on no less than 4 events. The report additionally stated that whereas there have been many banking majors within the acquisition of Paytm Payments Bank, nevertheless, ‘inadequate KYC compliance’ proved to be an enormous hindrance.
On March 1, Paytm introduced that it had mutually agreed to discontinue numerous inter-firm agreements with Paytm Payments Bank (PPBL). Paytm stated the corporate and its affiliate entity, PPBL, launched further measures to strengthen their method in direction of unbiased operations of PPBL.
On January 31, the banking regulator had determined to bar PPBL, which homes all of Paytm’s 330 million pockets accounts, from accepting deposits or prime-ups in any buyer accounts, wallets, FASTags and different devices after February 29. However, later, the RBI prolonged the deadline by 15 days until March 15, 2024.
The deadlines had been prolonged on providers like prime-ups and fund transfers, whereas the remaining PPBL providers can be shut on February 29 solely.
