If Paytm Payments Bank loses its license after March 15, an administrator designated by the RBI may take over to manage unclaimed deposits and oversee a few crucial areas.
If that occurs, the RBI may take such a dramatic action for the first time in more than 20 years, according to reports from a credible source.
According to the report, the administrator's job is to make sure that depositors receive an acceptable repayment for any further deposit claims.
The bank was fined Rs 5.49 crore by the Financial Intelligence Unit for breaking an anti-money laundering statute.
Vijay Shekhar Sharma resigned earlier this week from his position as PPBL's part-time non-executive chairman, and the bank's board was reorganized.
According to a Paytm Payments Bank representative, the penalty is related to problems with a business division that was shut down two years ago. "Following that period, we have enhanced our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU)," said a representative.
