Paytm Share Price: Shares of fintech company One97 Communications, the parent of Paytm, fell over 7 per cent on Monday, April 27, after a regulatory setback as the Reserve Bank of India (RBI) cancelled
the banking licence of Paytm Payments Bank Ltd (PPBL) with immediate effect from the close of business on April 24, 2026.
With this move, Paytm Payments Bank can no longer carry out banking business in India. The RBI has also said it will approach the High Court for the winding up of the bank.
Shares of Paytm opened at Rs 1,084 per shares compared to the previous close at Rs 1,147 per share.
The central bank cited multiple serious concerns.
The RBI said the bank’s affairs were being run in a way that was harmful to the interests of the bank and its depositors. It also raised concerns over the character of the management, saying it was prejudicial to depositors and public interest.
“The affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors. Thus, the bank is not complying with Section 22 (3) (b) of the BR Act,” the RBI said.
Further, the RBI said allowing the bank to continue would not serve any useful purpose or public interest.
The regulator also said Paytm Payments Bank failed to comply with conditions attached to its payments bank licence.
Since the licence has been cancelled, Paytm Payments Bank cannot operate as a bank anymore and it cannot accept deposits or conduct banking activities.
Paytm on Friday said the cancellation of the banking licence of associate entity Paytm Payments Bank by the Reserve Bank of India (RBI) will have no financial or business impact on the listed company, adding that all Paytm services remain fully operational.
The clarification came in an exchange filing after the company said it was informed by Paytm Payments Bank that the RBI had cancelled its banking licence with effect from the close of business on April 24, 2026.
