With less than two weeks to go for Paytm Payments Bank Limited or PPBL to cease operations, the Reserve Bank of India reportedly may consider the unprecedented step of revoking the banking license of Paytm Payments Bank Limited according to The Hindu Business Line report.
The report further adds that if this action is taken, it would mark the first time in over two decades that the banking regulator has resorted to such measures.
An administrator might be appointed to oversee critical aspects of the bank's operations, the report said.
Paytm Payments Bank has been in trouble after the Reserve Bank directed it to stop accepting fresh deposits from customers with effect from February 29 -- a deadline which was later extended to March 15.
Earlier this week, Vijay Shekhar Sharma stepped down as part-time non-executive Chairman of PPBL and the board of the bank was reconstituted.
The finance ministry said FIU-India had initiated a review of Paytm Payments Bank on receipt of specific information from law enforcement agencies in respect of a few entities and their network of businesses engaged in illegal acts, including organising and facilitating online gambling.