The Reserve Bank of India (RBI) has canceled the banking license of Paytm Payments Bank. Due to this, customers have increased concerns about the security of their deposits and the withdrawal of their money. Paytm Payments Bank claims to have more than 10 crore customers. However, after this action of the regulator, now the process of closing it has slowly started. Let us know the complete information about this situation in detail.
What is the full story?
The bank, promoted by One97 Communications and its founder, Vijay Shekhar Sharma, had been operating under certain restrictions since March 2022.
In January 2024, citing persistent concerns over compliance with regulatory rules, the RBI had barred the bank from accepting new deposits. This move created panic among customers, due to which many customers started withdrawing their money.
Now, RBI has gone a step further and completely canceled the banking license of Paytm Payments Bank.
When will customers get their money?
RBI has clearly said that Paytm Payments Bank has enough funds that if needed, it can easily return the deposits of all the customers.
At present, both banks and regulators are assuring that customers’ money is completely safe. Customers will not suffer any financial loss. More clarity on the refund process and timeline is expected to emerge in the coming weeks.
The bank assured its customers
After the license was canceled by RBI, Paytm Payments Bank has assured its customers that their money is completely safe. The bank has said that it has enough liquidity (cash) that it can easily return the deposits of all the customers. This includes various categories like savings accounts, current accounts, wallets, prepaid instruments, FASTags and all other types of deposits. Apart from this, the bank also said that information related to the next steps of this process will be given from time to time.