Reserve Bank of India cancels Paytm Payments Bank licence over regulatory violations
Updated
Updated · Reuters · Apr 24
Reserve Bank of India cancels Paytm Payments Bank licence over regulatory violations
9 articles · Updated · Reuters · Apr 24
The RBI will seek a court order to wind up Paytm Payments Bank, which held 13.95 billion rupees in deposits as of March 2025 and reported a net loss of 946.4 million rupees.
The cancellation, effective April 24, 2026, follows earlier business restrictions and marks the first such action against a specialized lender in India. Paytm clarified there will be no financial impact on its parent company.
Payment banks, introduced in 2014 to boost small deposits and transfers, have lost relevance due to digital payment growth and rising compliance costs, prompting regulatory scrutiny and industry consolidation discussions.
With its bank gone, will regulators now scrutinize Paytm's other businesses?
Can the Paytm app survive after its banking arm's dramatic shutdown?
Why did years of regulatory warnings fail to save Paytm's banking license?
Is the fall of Paytm Bank a death knell for India's fintech dream?
What happens to millions of user wallets now that Paytm Bank is gone?
How will this high-profile failure affect public trust in digital-only banks?