RBI cancels Paytm bank license

The Reserve Bank of India cancelled Paytm Payments Bank’s banking licence on April 24, 2026, ending the unit’s authority to conduct banking business. (rbi.org.in) RBI said the cancellation took effect from the close of business on April 24 and that it will apply to the High Court to wind up Paytm Payments Bank. (rbi.org.in) The central bank said the bank’s affairs were conducted in a way “detrimental” to the interests of the bank and its depositors, and said management was prejudicial to depositors and the public interest. (rbi.org.in) This was the final step in a crackdown that started earlier. RBI had already ordered Paytm Payments Bank to stop onboarding new customers from March 11, 2022. (rbi.org.in) Then, on January 31, 2024 and February 16, 2024, RBI tightened restrictions and barred any further deposits, credit transactions or top-ups in customer accounts, wallets, FASTags and other instruments after March 15, 2024. (rbi.org.in 1) (rbi.org.in 2) RBI also said withdrawals and use of existing balances were still allowed, and said Paytm Payments Bank has enough liquidity to repay its entire deposit liability during winding up. (rbi.org.in 1) (rbi.org.in 2) The immediate question for users is whether Paytm itself still works. Paytm says the answer is yes, because One 97 Communications and Paytm Payments Bank are separate entities. (paytm.com) In its April 25, 2026 update, Paytm said its app, UPI, QR codes, Soundbox devices, card machines, payment gateway and Paytm Money remain operational through partner banks including Axis Bank, HDFC Bank, SBI and YES Bank. (paytm.com) Paytm also said it had already ended material business arrangements with Paytm Payments Bank in March 2024. A March 1, 2024 exchange filing said the board approved discontinuation of various inter-company agreements with PPBL. (bseindia.com) (paytm.com) That separation helps explain why the licence cancellation hits the bank directly, but does not automatically shut down the broader Paytm payments app used by consumers and merchants. (rbi.org.in) (paytm.com) The case now moves from regulation to resolution: RBI has revoked the licence, barred banking activity with immediate effect, and says the bank has funds to repay depositors as the winding-up process begins. (rbi.org.in)