While RBI’s order does not mention why such a radical action was taken against the company, Moneycontrol has learned that RBI was miffed with Paytm Payments Bank’s non-compliance with regulatory requirements.
For RBI-regulated entities, though - and, in this instance, for banks subject to orders under Section 35A of the BR Act - legal options are limited to the reconsideration framework set out in the Act. The affected party goes back to RBI seeking a review of its decision. But this is neither bound by set processes nor timelines. The only alternate remedy is filing a writ petition before a high court or Supreme Court.