The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Ltd., over two years after imposing restrictions on its operations due to regulatory violations, including shortcomings in customer due diligence.
Paytm Payments Bank, backed by One97 Communications Ltd., had received a limited banking licence in August 2015. This allowed it to accept small deposits but did not permit lending. The company had previously attracted investments from global firms such as China’s Ant Group and Japan’s SoftBank.