Top News

Mumbai, 24 April. In a major regulatory move, the Reserve Bank of India (RBI) has canceled the banking license of Paytm Payments Bank. The central bank confirmed the decision in an official statement, saying that the bank will no longer be allowed to provide banking services.

Necessary steps will be taken to protect the interests of customers

RBI has taken this action due to serious concerns to violation of regulatory rules and norms. RBI also assured that necessary steps will be taken to protect the interests of customers and ensure that deposits and services are not adversely affected.

That’s why the license was canceled

According to RBI, the way the bank was functioning was not only harmful for the institution but also for its customers. This was found to be a violation of Section 22 (3)(b) of the Banking Regulation Act. The central bank further said that the management structure of the bank was not in the interest of the depositors or the public, which is against Section 22 (3)(c) of the Act.

RBI also said that allowing the bank to continue functioning in its present form would not serve any meaningful purpose or public interest, thereby violating Section 22(3)(e). The bank was also found to be non-compliant with the conditions attached to its payments bank license, which amounts to a violation under Section 22(3)(g) of the Act.

to close the bank RBI will go to High Court

The RBI said that the functioning of the bank was threatening the interests of depositors. She further said that Paytm Payments Bank failed to comply with the conditions of its license. The central bank has also announced that it will approach the High Court to initiate the process of winding up the bank.

RBI official order

In its statement, RBI said, ‘The Reserve Bank of India, vide an order dated April 24, 2026, has canceled the banking license granted to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949. This order will be effective from the close of business on April 24, 2026.

The statement further said, “Consequently, Paytm Payments Bank Limited is prohibited with immediate effect from carrying on ‘banking’ business as defined under Section 5(b) of the Banking Regulation Act, 1949, or any other business specified under Section 6. RBI will apply to the High Court for winding up of the bank.”