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RBI Cancels Paytm Payments Bank License
26 Apr
Summary
- Paytm Payments Bank operations winding down after RBI license cancellation.
- Shareholders approved voluntary winding-up following regulatory directives.
- No material impact on Paytm's core business operations expected.
Paytm Payments Bank Limited (PPBL) has commenced its operational wind-down following the Reserve Bank of India's (RBI) cancellation of its banking license, effective April 24, 2026. A meeting on April 25, 2026, saw the board and shareholders approve resolutions for voluntary winding-up, which will proceed under RBI direction. The central bank revoked PPBL's license, citing significant regulatory failures and management issues that were deemed detrimental to depositors and the bank's stability. Consequently, PPBL is no longer authorized to conduct banking activities. This transition means PPBL will no longer be associated with One 97 Communications Ltd (OCL) once the winding-up is finalized. Paytm has stated that this development will not materially affect its business, operations, or financial standing, emphasizing its lack of exposure to PPBL and assuring continuous service availability for Paytm users.
