The RBI said the action was taken as the affairs of the bank were being conducted in a manner “detrimental to the interest of the bank and its depositors.” Following the cancellation, Paytm Payments Bank is prohibited from undertaking the business of banking.
The Reserve Bank of India (RBI) today cancelled the banking licence of Paytm Payments Bank with effect from April 24, 2026, barring it from carrying out any banking operations.
The RBI said the action was taken as the affairs of the bank were being conducted in a manner “detrimental to the interest of the bank and its depositors.” Following the cancellation, Paytm Payments Bank is prohibited from undertaking the business of banking.
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The Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949, with the decision coming into effect from the close of business on April 24, 2026. Following the cancellation, Paytm Payments Bank Limited has been barred from carrying out the business of “banking” as defined under Section 5(b), as well as any additional activities permitted under Section 6 of the Act, with immediate effect.
The RBI also said it will initiate the process of winding up the bank by filing an application before the High Court.
According to the RBI’s official statement, the bank was directed previously as well to stop onboarding new customers with effect from March 11, 2022. Thereafter, on January 31, 2024 and February 16, 2024, certain business restrictions were also imposed on the bank, which, inter alia, disallowed any further deposits/credits/top-ups in existing customer accounts, prepaid instruments, wallets, etc.
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