India’s central bank revokes Paytm Payments Bank permit

The Reserve Bank of India has withdrawn the banking licence granted to Paytm Payments Bank, effectual 24 April 2026.

As a result, Paytm Payments Bank indispensable instantly cease carrying connected the concern of “banking” arsenic acceptable retired successful Section 5(b), on with immoderate different permitted concern activities, the apex bank.

The RBI said it volition determination the High Court with a petition to upwind up the bank.

It added that Paytm Payments Bank holds capable liquidity to conscionable each deposit liabilities during the winding-up process.

According to the cardinal bank, the licence was withdrawn due to the fact that the bank’s affairs were being tally successful a mode that harmed the interests of the instauration and its depositors.

It besides said the wide quality of the bank’s absorption was “prejudicial to the involvement of depositors” and to the wider nationalist interest.

The RBI said determination was nary utile intent oregon nationalist involvement successful allowing the slope to proceed operations.

It further said the slope did not conscionable the conditions attached to its Payments Bank permit, amounting to a breach of Section 22(3)(g) of the Banking Regulation Act.

The latest measurement follows earlier supervisory action. The slope had been told to halt taking connected caller customers from 11 March 2022.

Later, connected 31 January 2024 and 16 February 2024, the RBI placed further restrictions connected the bank’s operations, including a barroom connected further deposits, credits and top-ups successful existing lawsuit accounts, prepaid instruments and wallets.

"India’s cardinal slope revokes Paytm Payments Bank licence " was primitively created and published by Retail Banker International, a GlobalData owned brand.

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