RBI revokes Paytm Payments Bank's licence; what happens to your Paytm Wallet, UPI, and account now?
The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank for not following rules, saying its operations were not in the best interest of customers. The RBI will now move the High Court to formally shut down the bank.
What RBI said
The RBI stated that Paytm Payments Bank failed to meet the conditions required under its licence. The cancellation took effect from the end of business on Friday. However, the RBI also clarified that the bank has enough funds to return all customer deposits when it is closed.
"The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest... no useful purpose or public interest would be served by allowing the bank to continue...," the RBI said in a statement.
What it means for users
Your money is safe. The RBI has clearly said the bank can repay all deposits.
You can still use the Paytm app for services like UPI payments, mobile recharges, and bill payments as usual.
Company’s response
One97 Communications, which owns the Paytm brand, said it does not depend on Paytm Payments Bank anymore, as it had already written off its investment in the bank earlier.
The company also confirmed that key services like Paytm UPI, QR payments, Soundbox, card machines, and the payment gateway will continue to work normally despite the RBI’s action.
The RBI also noted that the affairs of the bank were conducted in a manner detrimental to its own interests as well as its depositors.
- With inputs from agencies
