RBI cancels Paytm Payments Bank license, One97 Communications loses ₹6,000cr
Business
Paytm's parent company, One97 Communications, saw its shares drop nearly 8% after the Reserve Bank of India (RBI) canceled the license of Paytm Payments Bank.
This move wiped out about ₹6,000 crore in market value, with shares falling to ₹1,055.25 on the BSE.
RBI says rule breaches, funds sufficient
The RBI said it pulled the plug because Paytm Payments Bank broke several rules and its management practices were not protecting customers or serving the public good.
While that sounds serious, the RBI also reassured everyone that the bank has enough funds to pay back depositors.