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The Reserve Bank of India (RBI) on Friday revoked the banking licence of Paytm Payments Bank Limited, bringing a sudden end to one of India's most high-profile payments bank experiments.

In a notification dated April 24, the RBI said it had cancelled the banking licence issued to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949, with effect from the close of business on April 24, 2026. Consequently, Paytm Payments Bank Limited has been prohibited from carrying on the business of "banking" as defined under Section 5(b), or any additional business specified under Section 6 of the Banking Regulation Act, 1949, with immediate effect. The Reserve Bank of India said it would move an application before the High Court for the winding up of the bank. The notification stated that Paytm Payments Bank Limited had sufficient liquidity to repay its entire deposit liability upon winding up. Subsequently, on January 31, 2024, and February 16, 2024, certain business restrictions were imposed on the bank, including a ban on further deposits, credits and top-ups in existing customer accounts, prepaid instruments and wallets, among others, the notification said.