Banking Licence Cancelled: Paytm Payments Bank to Stop Services from April 24
Reserve Bank of India Cancels Paytm Payments Bank Limited License: The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Limited, effectively ending its operations as a bank from the close of business on April 24, 2026. The decision was taken under provisions of the Banking Regulation Act, 1949, marking one of the strongest regulatory actions against a payments bank in India. Following this move, the bank is barred from conducting any form of banking or related activities.
According to the RBI, the bank failed to comply with critical regulatory requirements and was operating in a manner detrimental to its own interests and those of its depositors. The central bank cited violations of multiple provisions of the law, stating that the institution did not meet the conditions required under its licence. It also concluded that allowing the bank to continue would not serve public interest.
This action follows a series of restrictions previously imposed on the bank, including a ban on onboarding new customers since March 2022 and prohibitions on fresh deposits and wallet top-ups in early 2024. The cancellation signals RBI’s continued emphasis on strict compliance and depositor protection within India’s banking system.
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