RBI cancels Paytm Payments Bank Limited's license effective April 24, 2026

The Reserve Bank of India (RBI) officially cancelled the banking licence of Paytm Payments Bank Limited on April 24, 2026, under Section 22(4) of the Banking Regulation Act, 1949. This order is effective immediately, prohibiting the bank from continuing any 'banking' business as defined in the Act. The RBI's decision stems from multiple non-compliance issues, including conducting affairs detrimental to the interest of depositors and the public, and management conduct prejudicial to these same interests, violating Sections 22(3)(b) and 22(3)(c) of the Act respectively.

Further reasons for the cancellation include the bank's failure to comply with the conditions of its Payments Bank license, contravening Section 22(3)(g) of the Act. The RBI also determined that allowing the bank to continue would serve no useful public purpose, as per Section 22(3)(e). This regulatory action follows previous restrictions imposed on the bank, starting with a halt on onboarding new customers on March 11, 2022, and further business limitations on January 31 and February 16, 2024, which disallowed deposits, credits, or top-ups into existing accounts. The RBI has stated its intention to apply to the High Court for the winding up of Paytm Payments Bank Limited, assuring that the bank possesses adequate liquidity to meet its entire deposit liability.