RBI cancels Paytm Payments Bank licence and orders winding up
Paytm Payments Bank must cease all banking operations from April 24
Change
India's RBI cancelled Paytm Payments Bank's banking licence under Section 22(4) of the Banking Regulation Act, effective close of business 24 April 2026.
Why it matters
The bank cannot conduct any banking activity under Section 5(b) with immediate effect. RBI will file a winding-up application before the High Court. The bank holds enough liquidity to repay all deposit liabilities upon winding up.
Implications
- — Paytm Payments Bank must stop all banking operations immediately — licence void
- — Customers and counterparties must transition balances and services — continuity risk
- — Regulatory and legal teams must manage winding-up process — court proceedings initiated
Who is affected
- — Paytm Payments Bank operations and management
- — Bank customers and payment counterparties
- — Regulatory and legal teams
What to watch
- — High Court winding-up proceedings filing and timeline
- — Customer fund repayment execution during liquidation