Paytm Payments Bank is on the verge of facing a regulatory intervention by the Reserve Bank of India (RBI) as its license renewal deadline approaches on March 15. Sources suggest that an RBI-appointed administrator may step in to manage unclaimed deposits and oversee critical aspects if the license is not renewed.
This move could mark a significant development, with the RBI taking such drastic steps for the first time in over two decades. The administrator’s role would involve ensuring satisfactory repayment to depositors for any claims made post the appointment.
The bank recently faced a penalty of Rs 5.49 crore from the Financial Intelligence Unit for violating anti-money laundering laws. While the penalty pertains to issues in a discontinued business segment from two years ago, it raises regulatory concerns.
Vijay Shekhar Sharma, the founder of Paytm, recently resigned as the part-time non-executive Chairman of PPBL, and the bank’s board underwent reconstitution. The spokesperson for Paytm Payments Bank clarified that the penalty relates to a business segment discontinued two years ago. The bank has since enhanced monitoring systems and reporting mechanisms to comply with regulatory requirements.
As the March 15 deadline approaches, Paytm Payments Bank awaits a crucial decision from the RBI, with potential implications for the bank’s operations and its customers.
