Shares of One97 Communications fell sharply by over 6% in early morning trade after the Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Limited, triggering fresh concerns around regulatory risk and investor sentiment.
RBI Cancels Licence with Immediate Effect
The central bank, through its order dated April 24, 2026, revoked PPBL’s licence under Section 22(4) of the Banking Regulation Act, 1949. The cancellation took effect from the close of business on the same day, effectively barring the payments bank from carrying out any banking operations.
The RBI also stated it will initiate the winding-up process by approaching the High Court. The action follows prolonged regulatory scrutiny spanning several years.
Regulatory Concerns and Enforcement History
The RBI cited serious concerns over how the bank’s affairs were being conducted, stating that operations were detrimental to depositors’ interests and prejudicial to public interest, in violation of Section 22(3) of the Banking Regulation Act.
This development marks the culmination of a multi-year enforcement cycle that began in 2018. Earlier actions included restrictions such as a ban on onboarding new customers in March 2022 and curbs on fresh deposits in early 2024.
Depositor Impact and Liquidity Position
According to the RBI, Paytm Payments Bank Limited has sufficient liquidity to repay its depositors in full during the winding-up process. Reports indicate that the bank currently holds around ₹800 crore in deposits, which will be returned to customers as part of the closure proceedings.
Paytm’s Response and Business Continuity
In response, One97 Communications clarified that its services are not dependent on PPBL. The company stated that the payments bank operates independently, with no overlap in board or management control.
It also noted that its investment in PPBL had already been impaired as of March 31, 2024, indicating no direct financial hit from the licence cancellation.
Paytm confirmed that its core offerings will continue without disruption, including the Paytm app, UPI services, QR payments, Soundbox devices, card machines, payment gateway, Paytm Gold, and Paytm Money.