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Informist, Friday, Apr. 24, 2026

 

--RBI cancels banking licence of Paytm Payments Bank 
--RBI cancels banking licence of Paytm Payments Bank effective Fri 
--RBI on Paytm Bk: Business done in manner harmful to depositors' interest 
--RBI on Paytm Bk: Failed to comply with norms in payments bk licence

 

MUMBAI – The Reserve Bank of India Friday cancelled the banking licence of Paytm Payments Bank with immediate effect, saying that "the affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors." The central bank said it will approach the high court to wind up the bank.

 

Paytm Payments Bank has sufficient liquidity to repay its entire deposit liability upon closure of its operations, the RBI said. The RBI had, on Jan 31, 2024, placed operational restrictions on Paytm Payments Bank owing to continued non-compliance with regulations and significant supervisory concerns.  

 

In a release, the central bank said that management of the payments bank is "prejudicial" to the depositors' and the public interest.

 

Allowing the bank to continue operations would serve no purpose, the central bank said. The lender did not comply with directions applicable to a payments bank, the release said. The RBI had prohibited the bank from onboarding new customers in March 2022. The central bank had imposed restrictions on the bank in January and February of 2024, preventing further deposits, advances and other products. 

 

Paytm Payments Bank, which started operations in 2017, is an associate company of One 97 Communications Ltd. RBI had accorded "scheduled bank" status to the payments bank in December 2021.

 

Friday, shares of One 97 Communications ended 1.1% lower at INR 1,147.35 on the National Stock Exchange. For the December quarter, One 97 Communications reported a consolidated net profit of INR 2.25 billion on revenues of INR 21.94 billion.   End

 

Reported by Cassandra Carvalho

Edited by Saji George Titus

 

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