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The RBI has cancelled the licence of Paytm Payments Bank over serious compliance violations and governance concerns. The bank can no longer provide banking services and the central bank will move the High Court for its closure. New Delhi: In a major regulatory move, the Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank. The central bank confirmed the decision in an official statement, stating that the bank will no longer be allowed to offer banking services. The action has been taken due to serious concerns related to regulatory compliance and violations of norms. The RBI also assured that necessary steps will be taken to safeguard customer interests and ensure that deposits and services are not adversely affected. Why was the licence cancelled? According to the RBI, the bank's operations were being conducted in a manner that was detrimental not only to the institution but also to its customers. This was found to be in violation of Section 22...

Digital payments entity Paytm has denied media reports claiming that the Enforcement Directorate (ED) is probing foreign exchange violations under the Foreign Exchange Management Act (FEMA). Embattled digital payments company Paytm has denied media reports claiming that the Enforcement Directorate (ED) is investigating it in connection with foreign exchange violations under the Foreign Exchange Management Act (FEMA). A Reuters report, quoting two senior officials, claimed that the ED is already probing the company, but there has been no formal communication thus far. In a stock exchange filing, Paytm’s parent company, One97 Communications Limited (OCL), claimed that such reports are "entirely misleading, baseless and malicious". "The company (OCL) filed a specific clarification yesterday, categorically denying any investigation by the Enforcement Directorate on OCL, our associates and our management. We have since seen additional media reports making baseless speculation...