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INDIA'S CENTRAL BANK CANCELS PAYTM PAYMENTS BANK LICENSE

INDUSTRY DESK1 MIN READ
FRI, APR 24, 2026

■ AI-SUMMARIZED FROM 1 SOURCE ▸ TIMELINE

India's Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank Limited following persistent non-compliance with regulatory requirements. The action came after the central bank imposed business restrictions on the payments bank in January 2024.

The RBI cited violations of banking regulations as the reason for revoking the licence. The central bank had previously restricted Paytm Payments Bank's operations in January 2024 due to the company's failure to meet regulatory standards. Paytm Payments Bank, a subsidiary of fintech company One97 Communications, had been operating as a payments bank since its launch. The licence cancellation marks a significant setback for the digital payments company, which has faced increased regulatory scrutiny. Payments banks in India are limited-service banking entities that can accept deposits and offer remittance services but cannot provide loans or credit facilities. The RBI's action underscores the regulator's commitment to enforcing compliance standards across the banking sector. The cancellation requires Paytm Payments Bank to cease all banking operations. Customers will need to transition their accounts and services to other banking providers.

■ SOURCES

Techmeme

■ SUMMARY WRITTEN BY AI FROM THE LINKS ABOVE

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