The Reserve Bank of India (RBI) on Friday (April 24, 2026) cancelled the banking licence issued to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949 (‘BR Act’) effective from close of business on April 24, 2026.
Paytm Payments Bank Ltd has lost its banking licence, with the Reserve Bank of India banning the lender from carrying out operations with immediate effect. The RBI said Paytm Payments Bank Ltd (PPBL) has enough funds to repay its liabilities during the winding-up process.
Today’s decision is the last RBI action against the lender in a long process of regulatory action to close Paytm Payments Bank. The RBI had already banned it from taking new customers and accepting deposits.
The RBI’s action began in 2022 when it imposed curbs on the lender. It tightened the curbs in 2024 after repeated supervisory concerns over governance, compliance and operations surfaced.
The RBI cited multiple grounds for cancelling the licence, including the conduct of the affairs of the bank going against the interests of the lender and its depositors. The regulator said the character of its management was prejudicial to depositors and public interest.
