Mumbai | The Reserve Bank of India on Friday said it has cancelled the banking licence issued to Paytm Payments Bank.

The licence was cancelled as the "affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors", the RBI said in a statement.

"The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest," it said.

Consequently, Paytm Payments Bank is prohibited from conducting any "banking" business, it said.

The RBI also said it will make an application to the high court to wind up the bank.

"Paytm Payments Bank Limited has enough liquidity to repay its entire deposit liability upon winding up of the bank," it said.

Paytm Payments Bank has been barred from onboarding new customers with effect from March 11, 2022.