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Two Years On, ₹800 Crore Still Trapped in Paytm Bank
25 Apr
Summary
- Over ₹800 crore in customer funds remain inaccessible in Paytm Payments Bank.
- About ₹400 crore of the stuck funds are unclaimed by customers.
- Regulatory action began nearly two years ago, with limited progress on withdrawals.
As of April 25, 2026, over ₹800 crore in customer funds are still inaccessible in Paytm Payments Bank, nearly two years after operations were halted. Of this total, approximately ₹400 crore remains unclaimed by customers, with no substantial reduction in these balances over the past year. Initial deposits exceeded ₹5,500 crore, serving around 35 crore accounts, though only 10-10.5 crore were active. The Reserve Bank of India had encouraged Paytm to actively communicate with users to facilitate fund withdrawals, allowing extended timelines for an orderly customer migration before the eventual shutdown. The regulatory process, involving hearings and safeguards, extended beyond the RBI's internal March 2025 target for license cancellation, ensuring customers had ample time to move their money. Despite these efforts, a large sum of deposits remains stuck, highlighting limited success in cleaning up the balances. Past compliance issues may affect future approvals for Paytm, although the group has not applied for new licenses.
