In a strict step, the Reserve Bank of India (RBI) has canceled the banking license of Paytm Payments Bank. The central bank gave this information in an official statement. After this decision of RBI, Paytm Payments Bank will no longer be able to provide banking services. This action has been taken due to concerns related to violation of regulatory rules and compliance. The central bank said further steps will be decided keeping in mind the protection of customers’ interests, so that deposits and other services remain unaffected.
RBI said that the functioning of the bank was being conducted in a manner which was harmful to the interests of the depositors. RBI further said that Paytm Payments Bank failed to comply with the rules set out in the Payments Bank license issued to it. Furthermore, RBI announced that it will file a petition in the High Court for winding up the bank.
What did RBI say in its statement?
By an order dated April 24, 2026, the Reserve Bank of India has canceled the banking license issued to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949 (BR Act). This order will be effective from the close of business on April 24, 2026. Consequently, with immediate effect, Paytm Payments Bank Limited is prohibited from carrying on the business of ‘banking’—as defined in Section 5(b) of the Banking Regulation Act, 1949.