License of Paytm Payments Bank cancelled! RBI took big action, know what will be the impact on your UPI

RBI Action on Paytm: Reserve Bank of India Reserve Bank of India (RBI) has given a big blow to Paytm Payments Bank Limited. Taking a big decision, the Reserve Bank of India has canceled the banking license of Paytm Payments Bank Limited. This order has become effective from April 24.

It is a matter of relief that this decision will not affect Paytm’s UPI operation. The company partners with other banks for UPI services, so users will be able to continue transacting normally and they will not be affected.

Many restrictions were already in place

Even before this, RBI had imposed many restrictions on Paytm Bank. Paytm was banned from adding new customers from March 2022. After this, in January and February 2024, restrictions were also imposed on new deposits on Paytm accounts and wallets. After these continuous actions, now the Central Bank has taken this big step and canceled the license.

Complete ban on banking activities

According to the Reserve Bank of India (RBI), after this decision, the bank has been barred from carrying out any kind of banking or related activity under Section 5(B) and 6 of the Banking Regulation Act, 1949 with immediate effect. Now she will not be able to do banking activities. Also, RBI will apply to the High Court to initiate the process of closing the bank.

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Assurance regarding customers’ money

The Reserve Bank of India (RBI) has clearly stated to the customers that the bank has sufficient funds available, so that the money of all the depositors can be returned. At present, this matter is being seen as a major action in the banking sector, but it is a matter of relief for common users that digital payment and UPI services will continue as before.