The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank (PB), citing that the conduct of founder Vijay Shekhar Sharma and the entity owned by One97 Communications was detrimental to depositors’ interests.
The action was taken under Section 22(4) of the Banking Regulation Act, 1949, and is effective from the close of business on April 24, 2026.
With this decision, Paytm PB is prohibited from conducting the business of ‘banking’ under the law. The RBI will apply to the High Court for its winding up.
