RBI Cancels Paytm Payments Bank Licence on April 24, 2026

The Reserve Bank of India on April 24, 2026, cancelled the banking licence of Paytm Payments Bank Limited, prohibiting the institution from conducting any banking activities and initiating proceedings to wind up its operations through the High Court.

The central bank cited multiple violations of the Banking Regulation Act, 1949, including the bank's failure to comply with conditions attached to its payments bank licence. Officials stated that the institution's affairs had been conducted in a manner detrimental to its own interests and those of its depositors. They also noted deficiencies in management practices that were prejudicial to public interest and concluded that continuing operations would serve no useful purpose. "The Reserve Bank of India has, vide order dated April 24, 2026, cancelled the banking licence issued to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949, effective from close of business on April 24, 2026," the RBI said in a statement. As a result, the bank is barred from engaging in business defined under Sections 5(b) and 6 of the act.

Paytm Payments Bank, a subsidiary of One 97 Communications, received its limited banking...