RBI removes PPBL from scheduled banks after license cancelation
Business
Big news for digital banking: the Reserve Bank of India has officially dropped Paytm Payments Bank Ltd (PPBL) from its scheduled banks list after canceling its license.
The RBI said PPBL was not following key rules, putting depositors at risk, so much so that the Delhi High Court stepped in and ordered the bank to shut down.
PPBL under RBI restrictions since 2022
Paytm's banking arm has been under the RBI's watch since 2022, facing restrictions on adding new customers and later limits on deposits and transactions.
On July 31, PPBL was also removed from a special list (the Second Schedule of the RBI Act) that gives banks certain privileges, highlighting ongoing compliance issues.