The Reserve Bank of India (RBI), which controls and supervises banks in India, has cancelled the licence of Paytm Payments Bank Limited. This means Paytm Payments Bank is no longer allowed to operate as a bank from April 24, 2026.
The RBI stated that the bank had been failing to follow rules properly for a long time. It highlighted several serious issues, including poor compliance with regulatory guidelines, weaknesses in KYC (customer verification) processes, and concerns about the way the bank was being managed. RBI felt this could harm customers and the public, so it decided to shut it down.
RBI will apply to the High Court to officially shut down (wind up) the bank. The bank has enough money to return all customer deposits, so people’s money is expected to be safe.
What about Paytm app and services?
The main Paytm company, owned by One97 Communications Limited, clarified that it operates separately from Paytm Payments Bank Limited and does not depend on the bank for its core services. Regular Paytm services will continue without any problem.
As a result, key offerings such as the Paytm app, UPI payments, QR code payments, Soundbox and card machines, as well as services like Paytm Money and Paytm Gold, will continue to function normally without any disruption.
Even before this decision, the bank was already under strict restrictions. Since 2022, it was not allowed to add any new customers. Then, from March 2024, it also could not accept new deposits or allow people to add money to their accounts, wallets, or FASTags. The only thing customers were allowed to do was withdraw or use the money they had already deposited earlier.
