The Reserve Bank of India (RBI) has canceled the license of Paytm Payments Bank, a decision that concludes a regulatory scrutiny process that began in 2022. Ashvin Parekh, founder of Ashvin Parekh Advisory Services, explained that this cancellation is merely a procedural formality following years of restrictions, including a ban on onboarding new customers. The bank will now undergo a formal winding-down process under the Companies Act, ensuring that depositors and wallet users are fully repaid. Paytm Payments Bank's shareholders, One97 Communications and founder Vijay Shekhar Sharma, will receive any remaining assets after liabilities are settled. Importantly, the Paytm app itself remains operational, as it functions under Paytm Payment Services Limited, which holds a separate payments aggregator license from the RBI. This separation means users can continue their transactions without disruption, although the brand's reputation has taken a hit due to the regulatory failure associated with the bank.