The Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Limited on April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949, with immediate effect. As a result, the bank is prohibited from carrying out banking activities and the RBI will initiate winding-up proceedings before the High Court. The action was taken on multiple grounds, including that the bank’s affairs were conducted in a manner detrimental to depositors, its management was prejudicial to public interest, and it failed to comply with licensing conditions. The RBI also concluded that allowing the bank to continue would serve no useful purpose. Prior to cancellation, the bank had already faced regulatory restrictions, including a ban on onboarding new customers since March 2022 and limitations on deposits and related services imposed in 2024. The RBI stated that the bank has sufficient liquidity to repay depositors during the winding-up process. Separately, One 97 Communications Limited clarified that it has no financial exposure or operational dependency on the bank, and its services continue unaffected.
Reserve Bank of India
Date : Apr 24, 2026
RBI cancels the Licence of Paytm Payments Bank Limited
The Reserve Bank of India (RBI) 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 (‘BR Act’) effective from close of business on April 24, 2026. Consequently, Paytm Payments Bank Limited is prohibited from conducting the business of ‘banking’ as defined in Section 5(b) or any additional business specified under Section 6 of the Banking Regulation Act, 1949 with immediate effect. RBI will make an application for winding up of the bank before the High Court.
Paytm Payments Bank Limited has enough liquidity to repay its entire deposit liability upon winding up of the bank.
The Reserve Bank cancelled the licence of the Paytm Payments Bank Limited as:
1. The affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors. Thus, the bank is not complying with Section 22 (3) (b) of the BR Act.
2. The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest. Thus, the bank is not complying with provisions of Section 22 (3) (c) of the BR Act.
3. No useful purpose or public interest would be served by allowing the bank to continue as envisaged in Section 22 (3) (e) of the BR Act.
4. The bank failed to comply with the conditions stipulated in the Payments Bank license issued to it, thereby violating the provisions of Section 22 (3)(g) of the BR Act.
Previously, the bank was directed to stop onboarding of new customers with effect from March 11, 2022. Thereafter, on January 31, 2024 and February 16, 2024, certain business restrictions were also imposed on the bank which, inter alia, disallowed any further deposits/credits/ top-ups in existing customer accounts, prepaid instruments, wallets, etc.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/143
****
BSE Limited
Department of Corporate Services
Phiroze Jeejeebhoy Towers,
Dalal Street, Fort,
Mumbai – 400 001
Scrip Code: 543396
National Stock Exchange of India Limited
The Listing Department
Exchange Plaza,
Bandra Kurla Complex,
Mumbai – 400 051
Symbol: PAYTM
Subject: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 –Clarification regarding PPBL – No Financial or Business Impact on the Company; Paytm Services Fully Operational
Dear Sir / Ma’am,
In furtherance to our disclosure dated February 1, 2024, we would like to inform you that we have been informed by our associate entity, Paytm Payments Bank Limited (“PPBL”), at 7.49 p.m. (IST) today, that the Reserve Bank of India has, vide its press release dated April 24, 2026, cancelled the banking license of PPBL, with effect from “close of business on April 24, 2026”.
As previously disclosed on March 1, 2024, the Company does not have any exposure to PPBL or any material business arrangements with PPBL. No services provided by the Company are in partnership with PPBL. Additionally, PPBL operates independently, with no board or management involvement from the Company.
There is no direct financial impact on the Company since, as previously disclosed, the Company had already impaired its investment in PPBL as of March 31, 2024.
As informed earlier, Paytm (One 97 Communications Limited) and its services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies such as Paytm QR, Paytm Soundbox, Paytm card machines, and Paytm Payment Gateway, Paytm Money among others.
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.
This disclosure will also be hosted on the Company’s website viz. https://ir.paytm.com/.
Kindly take the same on record.
Thanking you,
Yours Sincerely,
For One 97 Communications Limited
Sunil Kumar Bansal
Company Secretary and Compliance Officer
FCS 4810
