Our Bureau
Mumbai
The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Limited. This big move stops all banking work right away. RBI said the order takes effect from close of business on April 24, 2026.
RBI used Section 22(4) of the Banking Regulation Act, 1949 for this step. The bank can no longer do any “banking” as per Section 5(b) or other business under Section 6 of the Act. RBI will now go to the High Court to start winding up the bank.
Why did this happen? RBI found the bank’s work hurt its own interests and those of depositors. This breaks Section 22(3)(b) of the BR Act. It also failed other rules like Section 22(3)(e) and 22(3)(g). The bank did not follow conditions in its Payments Bank licence.
Paytm Payments Bank got its licence in August 2015. It could take small deposits but not give loans. Backed by One97 Communications Ltd, it once had big investors like China’s Ant Group and Japan’s SoftBank.
This is not new trouble. RBI stopped new customers from March 11, 2022. In 2024, it barred more deposits and top-ups in accounts and wallets.
People with money in Paytm Payments Bank may worry. RBI’s action is tough after years of warnings. The bank must now face court for full close-down.
