RBI Canceled Paytm License: The Reserve Bank of India has canceled the banking license of Paytm Payments Bank. Now Paytm will not be able to do any kind of banking business in future. RBI (Reserve Bank of India) itself has issued a statement regarding this. In its statement, RBI has said that the banking license issued to Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949 (BR Act) has been canceled with effect from the close of business on April 24, 2026.

Why was the license canceled

Explaining the reason for this, RBI said, “Paytm was repeatedly violating banking rules, which could have caused loss to the bank and the people keeping money in it. The management of the bank was also not functioning properly, which was not good not only in the interest of the customers but also in the interest of the general public. RBI said that allowing Paytm Bank to continue operating under the current structure will serve neither any useful purpose nor public interest, due to which the license has been cancelled.

What will happen next now?

Under this decision, Paytm Payments Bank will not be able to participate in the operation of any banking business. RBI also said that it will file an application in the High Court to close the bank. “Paytm Payments Bank Limited has sufficient cash available to repay its entire deposit liability in the event of closure of the bank,” RBI said.

Let us tell you that in January 2024, RBI had stopped Paytm Bank from depositing new deposits, the reason for which was non-compliance of the orders issued by RBI. Which included rules related to customer security, use of money and technology infrastructure.

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Banking license of Paytm Payments Bank cancelled, what will be its effect on you, will people not be able to make payments now?