RBI Revokes Banking Licence of PPBL Over Non-Compliance with Banking Regulations
In April 2026, the Reserve Bank of India (RBI) revoked the banking licence of Paytm Payments Bank Limited (PPBL) under Section 22(4) of the Banking Regulation Act (BR Act, 1949), due to its failure to comply with norms stipulated in the payment bank licence issued to it.
In April 2026, the Reserve Bank of India (RBI) revoked the banking licence of Paytm Payments Bank Limited (PPBL) under Section 22(4) of the Banking Regulation Act (BR Act, 1949), due to its failure to comply with norms stipulated in the payment bank licence issued to it.
- As per RBI directions, PBBL will cease its banking operations with effect from April 24, 2026.
Imposes Penalties on Banks and Financial Institutions:
Bandhan Bank: The RBI imposed a penalty of Rs 41.8 lakh on Bandhan Bank for non-compliance with regulatory norms, including Know Your Customer (KYC) guidelines.
Muthoot Housing Finance: The RBI also imposed a penalty of Rs 80,000 on Muthoot Housing Finance Company for non-compliance with its directions on the Fair Practices Code.
Ebix Payments Services & Cooperative Banks: The RBI imposed a total penalty of Rs 2.60 lakh on Ebix Payments Services Limited and two cooperative banks under the Payment and Settlement Systems (PSS) Act, 2007.
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