The Reserve Bank of India (RBI) yesterday informed that it has, vide order dated April 24, 2026, cancelled the banking license issued to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949 (‘BR Act’), effective from the close of business on April 24, 2026.
आर बी आई ने पे टी एम पेमेंट्स बैंक लिमिटेड का लाइसेंस रद्द किया
RBI cancels the Licence of Paytm Payments Bank Limitedhttps://t.co/9gnglaGjYI— ReserveBankOfIndia (@RBI) April 24, 2026
The Paytm Payments Bank is prohibited from conducting the business of ‘banking’ or any additional business under Section 6 of the Banking Regulation Act, 1949, with immediate effect.
The license is cancelled as:
- The affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors.
- The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest.
- No useful purpose or public interest would be served by allowing the bank to continue
- The bank failed to comply with the conditions stipulated in the Payments Bank license issued to it.
In March 2022, the Paytm Payments Bank Limited was stopped from onboarding new customers, and in 2024, certain business restrictions were also imposed on the bank, which disallowed any further deposits/ credits/ top-ups in existing customer accounts, prepaid instruments, wallets, etc.
According to the RBI, Paytm Payments Bank Limited (PPBL) has enough liquidity to repay its entire deposit liability upon winding up of the bank.
Just after this order, Paytm has clarified that the above regulatory action has no financial or business impact on Paytm (One 97 Communications Ltd).
The recent regulatory action on Paytm Payments Bank Ltd (PPBL) has no financial or business impact on Paytm (One 97 Communications Ltd)
We have no exposure or material business arrangements with PPBL, and no services are offered in partnership with it. PPBL operates… pic.twitter.com/0iOPYrNf5u
— Paytm (@Paytm) April 25, 2026
It is specified that Paytm does not have any exposure to PPBL or any material business arrangements with PPBL. No services provided by Paytm are in partnership with PPBL. PPBL operates independently, with no board or management involvement from Paytm.
Paytm has already impaired its investment in PPBL, as of 31st March, 2024. Paytm (One 97 Communications Limited) and its services will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies, such as Paytm QR, Paytm Soundbox, Paytm card machines, Paytm Payment Gateway, Paytm Money, among others.
Paytm has specifically pointed out to all its stakeholders that the above regulatory act is related to PPBL, and any reference to this matter should be made solely in the context of PPBL, and not attributed to the company.
