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Paytm Faces Major Setback as RBI Cancels License
27 Apr
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.
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.
The RBI stated that PPBL's operations were conducted in a manner that was detrimental to its own interests and those of its depositors. The central bank concluded that the management's conduct was prejudicial to public interest.
Despite the license cancellation, One97 Communications, the parent company, assured investors that the winding up of PPBL would not have a material impact on its own business, operations, or financial condition. The company emphasized its independent operations.
Financial analysis firm Bernstein viewed the RBI's decision as an incremental development, noting that Paytm had already separated its payments bank from its core operations. Bernstein also indicated that the company's financial numbers were unlikely to be significantly affected, given PPBL's operations had been suspended for over a year prior to the cancellation.
