Mumbai, April 24, 2026 (Udaipur Kiran): In a major regulatory action, the Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Limited, citing serious violations and concerns over its functioning.
According to RBI, the licence stands cancelled with effect from the close of business on April 24, 2026. The regulator stated that the bank’s operations were found to be detrimental to the interests of depositors and the institution itself. It also noted that the bank failed to comply with the conditions laid down under its payments bank licence.
The action has been taken under Section 22(4) of the Banking Regulation Act, 1949. Following this, the bank has been barred from carrying out any banking activities or related business with immediate effect.
Depositors’ Money Safe, Says RBI
The RBI clarified that the bank has sufficient liquidity to repay all its deposit liabilities at the time of closure. It assured customers that their money is safe and there is no need for panic.
The central bank also indicated that it will approach the High Court to initiate the process for winding up the bank.
Repeated Non-Compliance Flagged
RBI said the bank’s operations were not aligned with regulatory provisions and continuing its operations would not serve any public interest. The regulator highlighted persistent non-compliance with licensing conditions.
This action follows earlier regulatory measures. The bank had been directed to stop onboarding new customers from March 11, 2022. Additional restrictions were imposed in January and February 2024, including a ban on accepting fresh deposits, credits or top-ups in accounts, wallets and prepaid instruments.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
