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India's central bank cancels Paytm Payments Bank licence
RBI said the bank repeatedly violated licence conditions and posed risks to depositors, and it will seek closure through the High Court.
- On Friday, April 24, 2026, the Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Limited, effective immediately, and will petition the High Court to wind up the institution.
- Years of regulatory siege preceded the decision, with the RBI citing failures in customer due diligence and technology infrastructure that it said rendered management practices prejudicial to depositors' interests.
- The central bank determined allowing operations served no public interest under Section 22 of the Banking Regulation Act, while One 97 Communications holds 51% shareholding in the entity.
- Paytm Payments Bank is now prohibited from conducting banking business or accepting deposits with immediate effect, reversing founder Vijay Shekhar Sharma's January 30 promise to "bring the wallet business back home."
- Payment banks have lost relevance since the Unified Payment Interface soared, and the RBI deemed licence cancellation preferable to merging, after Airtel Payments Bank's informal takeover interest failed to progress.
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38 Articles
38 Articles
Paytm Bank loses permit as RBI cancels licence over norm violations
In January 2024, the RBI had ordered the bank to stop accepting fresh deposits due to, what it said at the time, non-compliance with rules, including on customer due diligence, use of funds and technology infrastructure
·Varanasi, India
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India's central bank cancels Paytm Payments Bank licence
India's central bank said on Friday it has cancelled the banking licence issued to Paytm Payments Bank Limited, more than two years after the regulator imposed business curbs over violations, including lapses in customer due diligence.
·United Kingdom
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Coverage Details
Total News Sources38
Leaning Left5Leaning Right7Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 36%
14%
R 50%
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