A day after the Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Ltd, PBBL's board of directors and shareholders met and passed resolutions to begin the winding-up process — either as directed by the RBI or voluntarily with its approval, the company said ​in a stock exchange filing.
PPBL's "Board of Directors and Shareholders have, at their respective meetings held on April 25, 2026, approved necessary resolutions to enable the winding-up of PPBL, as instructed by the RBI, or voluntarily with the permission of RBI," it said in the filing on Saturday.
The RBI cancelled the banking licence of Paytm Payments Bank effective April 24, 2026, ordering it to cease all banking operations with immediate effect.
The central bank's decision was rooted in years of regulatory friction. In March 2022, the RBI had directed the bank to stop onboarding new customers. In early 2024, further restrictions followed — a ban on accepting fresh deposits, credits, or top-ups in customer accounts, wallets, and prepaid instruments.
The licence cancellation was the final step in what had become an extended regulatory crackdown. The RBI stated that "the affairs of the bank were conducted in a manner detrimental to the interest of its depositors."
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The RBI has said it will approach the high court to initiate formal winding-up proceedings. Once the order takes effect, PPBL will cease to be an associate company of its parent, One 97 Communications Limited, under the Companies Act, 2013. The parent company filed a disclosure with BSE and NSE on April 25, clarifying it has no financial exposure to PPBL and had already fully impaired its investment in the bank as of March 31, 2024.
For customers, the immediate concern is their money. The RBI stated that Paytm Payments Bank currently holds sufficient liquidity to repay all its deposit liabilities.
ALSO READ: RBI Revokes Paytm Payments Bank Licence, Seeks Winding Up
Existing balances can be withdrawn, but no fresh deposits will be accepted. As for the Paytm app, the NPCI had already approved Paytm as a third-party application provider, enabling it to continue UPI services through partner banks. Services including Paytm UPI, QR payments, Soundbox, card machines, and the payment gateway remain fully operational and unaffected by the bank's closure, RBI said.
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