Why did the RBI cancel the Paytm Payments Bank license?

The RBI cancelled the license because the bank's management conducted its affairs in a manner detrimental to its own interests and those of its depositors and the public.

What was the impact of the RBI's decision on Paytm's share price?

Paytm's share price tumbled 8% in early trade on April 27, 2026, erasing approximately ₹6,000 crore from its investor wealth.

Will the cancellation of PPBL's license affect One97 Communications?

One97 Communications assured shareholders that the winding-up of PPBL is not expected to have a material impact on the company's business, operations, or financial condition.

Home / Business and Economy / Paytm Faces Major Setback as RBI Cancels License

Paytm Faces Major Setback as RBI Cancels License

27 Apr

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Summary

RBI cancelled Paytm Payments Bank license on April 27, 2026.
Share price dropped 8% erasing ₹6,000 crore in value.
Management actions deemed detrimental to depositors and public.

Paytm Faces Major Setback as RBI Cancels License

On April 27, 2026, the Reserve Bank of India (RBI) officially cancelled the license of Paytm Payments Bank Ltd (PPBL). This regulatory action follows previous restrictions imposed on the bank's core business activities more than two years ago.

The cancellation caused a significant drop in One97 Communications' share price, with an 8% tumble in early trade. This resulted in a loss of approximately ₹6,000 crore from investor wealth, reducing its market capitalization. The BSE saw the share price hit a low of ₹1,055.25.