Shares of One97 Communications (Paytm) will be under intense scrutiny when markets open on Monday, April 27, after the Reserve Bank of India dropped a bombshell on Friday evening — cancelling the banking licence of Paytm Payments Bank Limited (PPBL) after market hours, when the stock had already closed at ₹1,147, down sharply from its 52-week high of ₹1,381.
The RBI, vide order dated April 24, 2026, cancelled the banking licence issued to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949, effective from the close of business on April 24, 2026. Paytm Payments Bank is now prohibited from conducting the business of banking with immediate effect. The RBI will make an application for winding up of the bank before the High Court.
The central bank cited the bank’s affairs being conducted in a manner detrimental to the interests of its depositors, and flagged serious concerns regarding the management’s conduct being prejudicial to public interest, violating Section 22(3) of the Banking Regulation Act. The cancellation is the culmination of a multi-year enforcement process beginning as early as 2018, including a ban on new customer onboarding in March 2022 and a bar on fresh deposits in early 2024.
The RBI assured that Paytm Payments Bank has enough liquidity to repay its entire deposit liability upon winding up. CNBC-TV18 has reported that the Payments Bank currently holds approximately ₹800 crore in deposits that will need to be returned to customers through the winding-up process.
One97 Communications responded swiftly, stating: “No services provided by the Company are in partnership with PPBL. Additionally, PPBL operates independently, with no board or management involvement from the Company.” The company added there is no direct financial impact since it had already impaired its investment in PPBL as of March 31, 2024. Paytm confirmed all major services will continue — including the Paytm app, Paytm UPI, Paytm Gold, Paytm QR, Paytm Soundbox, Paytm card machines, Paytm Payment Gateway and Paytm Money.
The market will decide on Monday whether it believes the company’s firewall argument or whether the reputational and regulatory overhang warrants a sharper correction from the ₹1,147 closing level.