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What next for Paytm's banking arm after India central bank clampdown?

By Economic Times - 10 months ago
Paytm: The Reserve Bank of India (RBI) has instructed Paytm's payments bank subsidiary to cease accepting new deposits, signaling a potential cancellation of its license. Paytm Payments Bank, which operates as a specialized banking entity, cannot offer credit services or facilitate fund transfers after February 29. Paytm has stated it will comply with the RBI's directions and expects an impact of up to INR 5 billion ($36 million) on its annual earnings. The move adds to regulatory concerns surrounding Paytm's business, but liquidity should not be an issue as the bank's deposits are held in government bonds and other banks.

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