The RBI said the action was taken as the affairs of the bank were being conducted in a manner “detrimental to the interest of the bank and its depositors.” Following the cancellation, Paytm Payments Bank is prohibited from undertaking the business of banking.
Surinder Chawla, CEO and MD of Paytm Payments Bank, has stepped down from his position, the company said in a regulatory filing on Tuesday.
Paytm released a set of questions and answers related to the future course of the payments business.
The development came days ahead of RBI's March 15 deadline to shut it's banking operations.
The Reserve Bank said that Paytm was given sufficient time for compliance with the norms.
"First it is an associate company and second is not an associate company in the sense that it is some Bank," Madhur Deora, President and Group CFO at Paytm said.
The RBI has also terminated the nodal accounts of One97 Communications Ltd., the parent company of Paytm, and Paytm Payments Bank Ltd.
Paytm Payments Bank Limited (PPBL) has gone live with UPI LITE, a feature enabled by the National Payments Corporation of India (NPCI) for multiple small-value UPI transactions, thus empowering its users with lightning fast UPI payments, the company said on Thursday.
Paytm Payments Bank Limited (PPBL) on Wednesday said it supports and welcomes the proposed implementation of the National Payments Council of India's (NPCI) UPI market cap.
The bank has appointed Deependra Singh Rathore as the interim chief executive officer (CEO), in addition to his role as chief product & technology officer, according to sources.
