RBI has cancelled the banking license of
Paytm Payments Bank Limited
¨
RBI has cancelled the
banking license of Paytm Payments Bank Limited.
¨
Decision taken due to
persistent regulatory concerns and non-compliance.
¨
Cancellation effective
from April 24, 2026 (close of business hours).
¨
RBI will approach the
High Court for initiating liquidation (closure) process.
¨
Marks a significant
development in India’s fintech ecosystem.
Legal Provisions
¨
License cancelled under
the Banking Regulation Act, 1949
¨
Action taken specifically
under Section 22(4)
¨
Bank prohibited from
engaging in ‘banking’ activities under Section 5(b)
¨
Additionally, barred from
conducting other businesses under Section 6
Key Reasons for License Cancellation
¨
Concerns regarding the
safety of customers' deposits
¨
Management decisions
found not to be in the public interest
¨
Apprehension of increased
risk should the bank continue operations
¨
Persistent violations of
KYC norms and regulations regarding the utilization of funds
¨
Repeated non-compliance
with licensing conditions
