RBI Cancels Paytm Payments Bank Licence

The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank with effect from the close of business on April 24, 2026.

The bank is no longer allowed to carry out any banking activity with immediate effect. The RBI will also move the High Court to start winding up proceedings.

The central bank said the company has enough liquidity to repay all its depositors during the winding up process.

The RBI listed multiple reasons for the decision. It said the bank’s affairs were run in a way that was harmful to the interests of both the institution and its depositors. It also flagged concerns around the management of the bank, saying its overall conduct was against public interest.

Further, the regulator said allowing the bank to continue would not serve any meaningful public purpose. It also noted that the company failed to meet the conditions set under its payments bank licence.

The move follows earlier restrictions imposed on the bank which almost made it defunct. In March 2022, it was asked to stop onboarding new customers. Later, in early 2024, the RBI barred it from accepting fresh deposits or adding funds to existing accounts, wallets and prepaid instruments.

(The story will be updated soon)

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