The Reserve Bank of India (RBI) has revoked the licence of Paytm Payments Bank Limited (PPBL), stating that its management is not in the public interest and is rather harmful to both lenders and depositors. One97 Communications Limited largely remains unaffected. UPI payments shall continue.
The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Limited (PPBL). The close of business was on April 24, 2026. According to a recent press release by the RBI, the banking licence cancellation occurred under Section 22(4) of the Banking Regulation Act, 1949 (‘BR Act’), effective from the close of business on April 24, 2026.
Paytm Payments Bank Limited will not be able to conduct any banking business under Section 5(b). It is to be noted that UPI payments linked with other banks except Paytm Payments Bank will remain unhindered.
The Paytm Payments Bank Limited (PPBL) was under supervision since 2022, with curbs reportedly strengthened in 2024 leading to the final cancellation two days ago. The functions of Paytm Payments Bank Limited (PPBL) will remain minimal, and it cannot accept any fresh deposits further. One97 Communications, which holds Paytm Payments Bank, is unlikely to experience any losses.
The RBI stated that PPBL ran its business in a manner harmful to both lenders and depositors, violating norms issued under its banking licence. The bank was no longer working in favor of the public and that no purpose would be served.
Customers with balances linked to PPBL are assured by the RBI that the bank has enough liquidity to repay its deposit liabilities. The winding up application is to be filed in the High Court.
Officials from One97 Communications Limited stated that the matter relates specifically to PPBL, which is a separate entity, and should not be attributed to the company.
We would point out to all stakeholders that this matter is related to PPBL, a separate entity, and any reference to this matter should be made solely in the context of PPBL, and not attributed to the Company.
While the RBI officials stated that:
The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest… no useful purpose or public interest would be served by allowing the bank to continue.
Sources confirm that Paytm Payments Bank Limited (PPBL) has been encouraging depositors to withdraw their funds following the restrictions.
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