Paytm Payments Bank To Be Wound Up
Paytm Payments Bank To Be Wound Up
Paytm Payments Bank will be wound up after the Reserve Bank of India cancelled its banking licence, more than two years after the regulator imposed strict business restrictions on the payments bank.
RBI Cancels Paytm Payments Bank Licence
The RBI cancelled the licence of Paytm Payments Bank under Section 22(4) of the Banking Regulation Act, 1949, with effect from the close of business on April 24, 2026.
The regulator said the bank was no longer permitted to carry on banking business. It also said it would move the High Court for winding up proceedings and appointment of an official liquidator.
Paytm Says Services Will Continue
One 97 Communications, the parent company of Paytm, said the RBI action applies only to Paytm Payments Bank and will not affect Paytm’s app, UPI services, merchant payments or other consumer-facing operations.
The company said it has no exposure to Paytm Payments Bank and had already impaired its investment in the bank earlier. Paytm also said its services will continue uninterrupted across platforms.
Stock Falls After RBI Action
Shares of One 97 Communications fell sharply in early trade after the licence cancellation, before recovering part of the losses. Analysts said the direct financial impact may be limited because Paytm had already separated its operations from the payments bank.
However, the RBI decision keeps regulatory concerns in focus. The development marks the final closure of a long-running regulatory dispute involving compliance, governance and customer due diligence issues at Paytm Payments Bank.
