RBI move on Paytm Payments Bank may be precursor to licence cancellation: Report

MUMBAI, - The Indian central bank's decision to stop Paytm Payments Bank from new business could be a precursor to its licence being cancelled, according to a source familiar with the matter.

The central bank stopped Paytm Payments bank from taking fresh deposits, facilitating credit and fund transfers after Feb. 29. This period will allow customers to unwind their deposits and transactions with Paytm Payments Bank and prevent a systemic impact, the source said.

Paytm did not immediately respond to Reuters' request for comment.