RBI Revokes Paytm Payments Bank Licence, Plans To Approach High Court | What Now?

RBI has cancelled the banking licence of Paytm Payments Bank with immediate effect from 24th April 2026 and will apply for its winding up in the High Court. The regulator cited four major reasons: operations detrimental to the bank and depositors, management prejudicial to public interest, no useful purpose in continuing, and repeated non-compliance with licence conditions. This follows years of restrictions — new customer onboarding stopped in 2022 and fresh deposits barred since January 2024. Paytm Payments Bank, backed by One97 Communications, could accept small deposits but not lend. The move formalises what the market had already anticipated. Paytm shares fell only 0.5% as much of the damage was priced in earlier.