Paytm said the resolutions for voluntary winding-up were passed a day after the RBI’s decision came into effect on April 24. The company added that the winding-up will be carried out in accordance with regulatory directions and subject to approval from the central bank.
The RBI had revoked PPBL’s licence under Section 22(4) of the Banking Regulation Act, 1949, citing serious regulatory lapses and concerns around the bank’s management. The central bank said the institution’s functioning was detrimental to depositors and its overall stability, and that the general character of its management was not in line with public interest. With the cancellation in force, PPBL is no longer permitted to undertake banking or related business activities.
Paytm said that following the completion of the winding-up process, PPBL will cease to be an associate of One 97 Communications Ltd (OCL).
The company also reiterated that there is no material impact on its business, operations or financials as a result of the development. It maintained that it does not have any exposure or material business link with PPBL and that all Paytm services continue to operate without interruption.
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