RBI Revokes Paytm Payments Bank License; Paytm Services Remain Unaffected
Paytm Payments Bank licence cancelled; Paytm says app, UPI services unaffected
Business Standard
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The Reserve Bank of India has revoked the banking license of Paytm Payments Bank effective April 24, 2026, due to regulatory violations. However, One 97 Communications, the parent company, stated that its services, including the Paytm app and UPI, will continue without disruption as they are not linked to the payments bank.
- 01RBI canceled Paytm Payments Bank's license due to regulatory violations.
- 02One 97 Communications confirmed no financial impact from the cancellation.
- 03All Paytm services, including UPI and payment gateway, will remain operational.
- 04The parent company reported a net profit of ₹225 crore in Q3 FY26, up from a loss the previous year.
- 05Shares of One 97 Communications fell by 1.10% following the announcement.
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The Reserve Bank of India (RBI) has canceled the banking license of Paytm Payments Bank, effective April 24, 2026, citing regulatory violations and governance concerns that could harm depositors' interests. The RBI stated that continuing the bank's operations would not serve the public interest and plans to initiate winding-up proceedings in the High Court. In response, One 97 Communications, the parent company of Paytm, emphasized that there would be no financial impact from this decision, as it has no exposure to the payments bank and had fully impaired its investment by March 31, 2024. All Paytm services, including the Paytm app, UPI, and payment gateway, will continue to function normally as they are independent of the payments bank. In its latest financial report, One 97 Communications announced a consolidated net profit of ₹225 crore for Q3 FY26, compared to a net loss of ₹208 crore in Q3 FY25, with a 20.02% year-on-year increase in revenue from operations to ₹2,194 crore. Following the announcement, shares of One 97 Communications dropped 1.10% to ₹1,147.10.
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The cancellation of the banking license could affect customers who use Paytm Payments Bank for their banking needs, but existing Paytm services remain unaffected, ensuring continuity for users.
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