Paytm suffers a major setback, Reserve Bank of India cancels Payments Bank's banking license

News Topical, Digital Desk : Taking a major step, the Reserve Bank of India (RBI) has cancelled the banking license of Paytm Payments Bank with effect from April 24, 2026.

The central bank clarified that now Paytm Payments Bank will not be allowed to do any kind of banking business.

According to the RBI, serious deficiencies were found in the bank's operations, which were detrimental to the interests of the bank and its customers (depositors). The regulator stated that the bank repeatedly failed to comply with the conditions of its license. The central bank also believes that allowing the bank to continue operating under these circumstances is neither in the public interest nor useful.

What will be the impact?
After the license is cancelled, Paytm Payments Bank will no longer be able to continue banking activities like accepting deposits, providing transaction services. This could impact millions of customers and the fintech sector.

Fall in the shares of One 97 Communications
The shares of Paytm's parent company One 97 Communications have seen a fall on Friday. The stock fell by about 0.56% and closed at ₹1,153.

During the day, the stock touched a high of ₹1,170 and a low of ₹1,142.50, while opening at ₹1,159.95. The stock remained under pressure in intraday trading and around noon it even slipped to ₹1,146.

The market cap of the company is around ₹73,800 crore. Looking at the 52-week data, the stock has reached a high of ₹1,381.80 and a low of ₹808, which reflects its fluctuations in the last one year.

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