- By Raju Kumar
- Fri, 24 Apr 2026 07:58 PM (IST)
- Source:JND
Paytm Payments Bank Ltd Row: The Reserve Bank of India (RBI) on Friday cancelled the banking licence of Paytm Payments Bank Ltd (PPBL), with immediate effect, for failing to comply with payments bank licence norms. The RBI issued an official statement on the licence cancellation of Paytm Payments Bank Limited, saying no useful purpose or public interest would be served by allowing the Paytm Payments Bank to continue.
The Central bank said that Paytm's parent company, One97 Communications Ltd, which owns the Paytm brand, has enough liquidity to repay its entire deposit liability upon winding up of the bank. RBI will make an application for the winding up of the bank before the High Court.
Why RBI Revoked Patym Payment Bank's Licence
According to the RBI, there was no useful purpose or public interest in allowing the Paytm Payments Bank to continue. It said the Paytm Payments Bank Limited is prohibited from conducting the business of 'banking' for failing to comply with the conditions stipulated in the payments bank licence issued to it. The licence was cancelled as the "affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors, the RBI said in a statement.
"The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest," it said. Consequently, Paytm Payments Bank is prohibited from conducting any "banking" business, it said.
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RBI Cancels Banking Licence Of Paytm Payments Bank; Will It Affect UPI Transactions?
No, the cancellation of Paytm Payments Bank has nothing to do with Paytm's UPI services. Paytm and UPI are not the same. UPI (Unified Payments Interface) is a real-time payment system and infrastructure launched by the RBI and NPCI in India. It enables instant money transfers between bank accounts. Paytm, on the other hand, is a mobile payment application that uses the UPI platform to allow users to make transactions. Paytm is one of the payment service providers that integrates UPI, offering a user-friendly interface for payments, Paytm said on its website.