The Reserve Bank of India (RBI) has officially cancelled the banking licence of Paytm Payments Bank Limited (PPBL), effective at the close of business on April 24, 2026. This decisive action, taken under Section 22(4) of the Banking Regulation Act, 1949, immediately prohibits the entity from conducting any banking or related operations.

The central bank plans to petition the High Court to commence winding-up proceedings. Officials confirmed that PPBL maintains sufficient liquidity to fully satisfy all outstanding deposit liabilities during this process. The RBI’s decision follows years of regulatory scrutiny, citing conduct deemed detrimental to depositors' interests and a persistent failure to comply with licence conditions. The regulator concluded that allowing the bank to continue operations was no longer in the public interest.

Parent company One 97 Communications Limited (Paytm) has clarified that it holds no financial exposure to PPBL, noting that its investment was fully impaired by March 2024. The firm maintains that it operates independently of the now-defunct banking entity.

Despite this setback for its former banking arm, Paytm continues to operate its payment aggregator business through its subsidiary, Paytm Payments Services Limited, which received regulatory clearance for physical and cross-border transactions in late 2025. Additionally, the company has bolstered its market standing by transitioning to a majority Indian-owned structure to align with current fintech ownership guidelines.