Reserve Bank of India (RBI) cancels licence of Paytm Payments Bank

Key facts

• The Reserve Bank of India (RBI) cancelled the banking licence of Paytm Payments Bank on April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949.
• The RBI cited that the bank's business was conducted in a manner harmful to depositors' interest and failed to comply with the conditions stipulated in its licence.
• Paytm Payments Bank received a limited banking licence in 2015 and commenced operations in May 2017.
• In March 2022, the RBI directed the bank to stop onboarding new customers.
• The RBI barred the bank from accepting fresh deposits and credits after March 15, 2024, except for interest, refunds, cashbacks, and sweep-ins.
• As of March 2025, the bank recorded total deposits of ₹13.95 billion and a loss of ₹946.4 million.
• The RBI announced it would approach the High Court for the winding up of the bank.
• The parent company of the bank is One 97 Communications.