The Reserve Bank of India's (RBI) decision to cancel the banking license of Paytm Payments Bank Limited (PPBL) has raised concerns for its parent company, One 97 Communications. Bernstein, a brokerage firm, described the RBI's communication as 'harsh' but has retained an 'Outperform' rating on One 97, setting a target price of ₹1,500, which indicates a potential upside of 30% from current levels. The RBI's actions stem from findings of non-compliance regarding customer due diligence and technology infrastructure, leading to a halt on accepting new deposits since January 2024. Bernstein noted that the company has made efforts to separate its core operations from PPBL and has already written off its investment in the bank. Despite the regulatory challenges faced by PPBL, Bernstein believes this situation could pave the way for Paytm to apply for a Non-Banking Financial Company (NBFC) or Prepaid Payment Instruments (PPI) license, allowing it to offer payment and credit products. Paytm's shares have outperformed major indices, showing a 26% increase over the past year, contrasting with declines in the Nifty and BSE Sensex.