The Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Ltd, not a cooperative bank, over persistent regulatory violations and governance concerns. The April 24, 2026 order immediately halts all banking operations and initiates winding-up proceedings.
RBI said the bank’s affairs were detrimental to depositors and public interest, adding continued operations would serve no purpose. It assured that adequate liquidity exists to repay depositors in full. Parent firm One 97 Communications Ltd said there will be no impact on its core business, as services had already shifted to partner banks.
The action follows years of restrictions and governance changes that failed to resolve regulatory concerns.