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The Reserve Bank of India (RBI) has cancelled the banking licence of Paytm Payments Bank Limited with effect from April 24, 2026. Acting under the provisions of the Banking Regulation Act, 1949, the central bank cited serious governance failures and regulatory non-compliance. The RBI found that the
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The RBI cancelled the licence due to serious governance failures, regulatory non-compliance, and because the bank's operations were detrimental to the interests of its depositors and the public.
The cancellation of the banking licence is effective from the close of business on April 24, 2026.
With immediate effect, Paytm Payments Bank is prohibited from conducting any banking activities, and the RBI will begin winding-up proceedings.
Yes, the RBI has clarified that Paytm Payments Bank has sufficient liquidity to fully repay all its depositors upon winding up.
Yes, the bank was previously directed to stop onboarding new customers in March 2022, and faced further business restrictions in January and February 2024, including a ban on further deposits or top-ups.
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