The Reserve Bank of India is discussing imposing further sanctions on Paytm Payments Bank and may reach a decision within days, two sources familiar with the matter told TechCrunch.
The central bank has internally discussed revoking the license of payments bank Paytm, which requested anonymity because it is not authorized to speak to the press, the sources said.
The discussion comes after the central bank summoned two Paytm officials to its office in recent weeks over compliance progress, one of the sources said.
In one of its strongest messages, the Reserve Bank of India on Wednesday ordered new restrictions on Paytm Payments Bank, effectively ensuring that the payments bank is no longer operational in less than six weeks.
Paytm on Thursday said it will stop working with Paytm Payments Bank and explore tie-ups with other banks for several of its financial services.
A payments bank license allows the holder to provide basic banking services such as accepting customer deposits of up to $2,400.