Paytm Payments Bank Limited lost its banking license on April 24, 2026, when the RBI invoked Section 22(4) of the Banking Regulation Act, 1949. The central bank cited four grounds for cancellation: operations conducted in a manner harmful to depositor interests, failure to comply with regulatory norms, failure to meet licence conditions, and persistent non-compliance despite prior warnings. PPBL is prohibited from conducting any banking business with immediate effect.
The RBI stated it will file a winding-up application before the relevant High Court. Approximately Rs 800 crore in customer deposits remain with PPBL, though the central bank confirmed the institution has sufficient liquidity to repay its entire deposit liability during the winding-up process. Customers can continue to withdraw existing balances without disruption.
One 97 Communications confirmed that Paytm's UPI, QR code, Soundbox, and payment gateway services continue to operate through separate subsidiaries independent of PPBL. The licence cancellation concludes regulatory action that began with a March 2022 onboarding freeze and escalated to full deposit restrictions in early 2024.