RBI Cancels Licence of Paytm Payments Bank, Orders Immediate Halt to Operations

April 25, 2026 : The Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Limited, directing the entity to cease all business activities with immediate effect.

In its statement, the regulator clarified that the bank holds sufficient liquidity to fully repay all depositors as part of the winding-up process.

The action follows a series of regulatory interventions beginning in March 2022, when the bank was barred from onboarding new customers. This was followed by stricter measures in early 2024, including a prohibition on accepting fresh deposits, credits, and top-ups in existing accounts and prepaid instruments.