Reserve Bank of India Cancels Paytm Payments Bank Licence, Orders Immediate Halt to Operations

VoM News Desk | April 25, 2026 | 08:48 AM IST | Breaking News, Business, India | Follow on Google News

Reserve Bank of India Cancels Paytm Payments Bank Licence, Orders Immediate Halt to Operations

NEW DELHI, Apr 25 (VoM News) — The Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Ltd, directing the lender to cease operations with immediate effect, marking the final step in a prolonged regulatory crackdown.

The central bank said the payments bank has sufficient funds to meet its liabilities during the winding-up process and assured that depositors’ interests would be protected.

The action follows a series of regulatory measures initiated in 2022, when the RBI first imposed restrictions on the lender. These were tightened in 2024 after repeated concerns over governance lapses, compliance failures and operational irregularities.

In its order, the RBI cited multiple violations, stating that the conduct of the bank’s affairs was detrimental to both depositors and public interest. It also raised concerns over the management’s functioning, noting that allowing the bank to continue would serve no useful purpose.

The regulator had earlier barred PPBL from onboarding new customers and accepting fresh deposits, effectively curtailing its core operations.

Responding to the development, One 97 Communications Ltd said it has no material exposure to the payments bank. In a regulatory filing, the company stated that its services — including the Paytm app, UPI, and other financial products — will continue without disruption.

The company added that it had already impaired its investment in PPBL as of March 2024 and reiterated that the payments bank operates independently, with no direct management overlap.

VoM News Desk

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