The report further stated that the decision was made in response to multiple instances of Paytm Payments Bank Limited’s deficient investigation.
Paytm Payments Bank Losing the Bank Licence
Paytm Payment Banks:- The Hindu Business Line claimed that with fewer than two weeks remaining until the central bank’s deadline to suspend operations, the Reserve Bank of India (RBI) may revoke the banking license of PPBL. The RBI would not have taken such an action for more than 20 years if this were to occur.
A potential administrator appointment to manage important facets of the bank’s operations was also mentioned in the study.
It further stated that the decision was made in response to numerous instances of Paytm Payments Bank Limited’s inadequate due diligence.
More sources claim that the regulator turned down interest from companies looking to buy Paytm Payments Bank, telling them they would have to bear all the risk and that they would not receive any special treatment when it came to compliance.
The individual mentioned above stated, “This was a barrier for any transaction to go through,” the report stated.
Paytm Payment Bank:- Fall share price 3%
In response to allegations that Paytm Payments Bank Limited (PPBL) would suspend operations in less than two weeks, the Reserve Bank of India (RBI) may take the extraordinary step of revoking its banking license, Paytm shares slumped 3% in morning trade on March 4.
If the RBI decides to revoke PPBL’s license, it will be the first time the banking authority has done so in more than 20 years.
Paytm Payments Bank was subject to business restrictions by the RBI on January 31. Among them were prohibitions against taking new deposits and credit transactions after March 15.
Significant anomalies in KYC were discovered by the regulator, putting consumers, depositors, and wallet owners at grave danger. Since the RBI crackdown, the stock has experienced a sharp decline.