Paytm crisis: The Reserve Bank of India (RBI) has been cracking down on financial entities in recent years, and the action taken against Paytm is in line with its regulatory processes. The RBI has previously taken disciplinary action against HDFC Bank, Bajaj Finance Limited, and Bank of Baroda for various non-compliance issues. The RBI s message is clear: any signs of stress or breach will invite scrutiny, and if corrective actions are not taken, regulatory restrictions will be imposed.
Paytm: The Reserve Bank of India (RBI) has instructed Paytm s payments bank subsidiary to cease accepting new deposits, signaling a potential cancellation of its license. Paytm Payments Bank, which operates as a specialized banking entity, cannot offer credit services or facilitate fund transfers after February 29. Paytm has stated it will comply with the RBI s directions and expects an impact of up to INR 5 billion ($36 million) on its annual earnings. The move adds to regulatory concerns surrounding Paytm s business, but liquidity should not be an issue as the bank s deposits are held in government bonds and other banks.