In a landmark decision, the Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank, effective from April 24, 2026. The RBI cited governance lapses by Vijay Shekhar Sharma (founder) and One97 Communications Ltd, stating their conduct was detrimental to depositors' interests. This action follows a series of restrictions on the bank, which was barred from onboarding new customers since March 2022 and prohibited from deposit or credit transactions since February 2024. The RBI emphasized that allowing the bank to continue would not serve any public interest, and it will apply for the bank's winding up in court. As of March 31, 2025, the bank holds customer deposits totaling ₹1,395.22 crore (approximately $168 million USD), with sufficient liquidity to meet its obligations upon winding up. The decision reflects a growing trend of regulatory scrutiny in the banking sector, particularly for entities that fail to adhere to compliance standards.