Current Affairs - Banking - Discussion

Paytm Payments Bank is the entity whose licence was cancelled by the Reserve Bank of India (RBI) using its powers under Section 22(4) of the Banking Regulation Act, 1949. The cancellation led to a complete prohibition on conducting all banking activities, including those defined under Sections 5(b) and 6 of the Act. This action resulted in an immediate halt to its operations. Payments banks in India are designed to facilitate digital transactions and accept limited deposits, but they cannot issue loans or credit cards, making regulatory compliance crucial for their functioning.