The Reserve Bank of India (RBI) has taken disciplinary action against Paytm Payments Bank, following persistent non-compliance. The action was taken after banks anxiety to maintain market share and margins impeded full transmission of effective interest rates. The Paytm Saga began when the RBI directed Paytm Payments Bank to stop all banking services, including deposit acceptance and payment processing, effective February 29.
(Bloomberg) The news conference following the Indian central bank’s monetary policy meeting typically centers on topics such as economic growth, inflation and liquidity. On Thursday, however, the discussion was largely dominated by questions about the fate of fintech pioneer Paytm’s bank.Most Read from BloombergEpstein Contacted Staley for Years at Barclays Using Go-Between, Court Filings ClaimCitadel Among Hedge Funds That Got Morgan Stanley’s Block-Trading LeaksA 99% Bond Wipeout Hands Hedg
Last week, the Reserve Bank of India (RBI) issued a directive to Paytm Payments Bank, prohibiting it from accepting new deposits starting February 29, 2024.