Paytm Payments Bank
Noida, India
The Reserve Bank of India cancelled the banking licence of Paytm Payments Bank Limited (PPBL), effective close of business on Apr 24, 2026. The revocation cited persistent KYC failures, including a single PAN linked to thousands of accounts, breaches of transaction limits, and failure to meet licence conditions under Section 22(3)(g) of the Banking Regulation Act, 1949. It marked the first outright revocation of a payments bank licence in India.
39 crore for inadequate operational separation from parent One 97 Communications (Paytm). The RBI will seek High Court approval for winding-up proceedings. PPBL operated as a digital banking arm linked to Paytm's fintech ecosystem.
The parent company had already migrated services to partner banks in 2024.
- Signals strict compliance-first supervision for fintech-linked banking entities in India
- First outright payments bank licence revocation in India sets a precedent for similar enforcement globally
- Highlights risks of inadequate governance separation in bank-fintech partnerships
- May accelerate regulatory scrutiny of BaaS-style arrangements where fintech parents exert operational influence over partner banks
- Only six of eleven original Indian payments banks remain operational, raising questions about the viability of the payments bank model
- NewsNeobanque