CORPORATE
RBI revokes Paytm Payments Bank’s banking licence after repeated violations
- IBJ Bureau
- Apr 25, 2026
The Reserve Bank of India (RBI) has cancelled the banking licence issued to Paytm Payments Bank.
The move follows more than two years after the banking regulator had imposed business curbs over violations, including lapses in customers’ due diligence.
Backed by One97 Communications, which once counted China’s Ant Group and Japan’s SoftBank as investors, Paytm had obtained a limited banking licence in August 2015 that allowed it to take small deposits but not give out loans.
In January 2024, the RBI had ordered the bank to stop accepting fresh deposits due to non-compliance with rules, including on customers’ due diligence, use of funds and technology infrastructure.
The RBI has said that it will make an application for winding up of the bank before the high court.
While the bank remains operational, its activities are severely limited to processing withdrawals of existing deposits and facilitating loan referrals through banking correspondents, according to its website. It cannot take fresh deposits.
Report By
View Reporter News