Paytm Payments Bank License Cancellation: Reserve Bank of India has canceled the banking license of Paytm Payments Bank. After which, concerns have increased among customers regarding the security of their deposits and getting the money back.

Paytm Payments Bank claims to have more than 10 crore customers. However, now after the action of the regulator, the process of its closure is slowly progressing. Let us know about this.

What is the whole matter?

• This bank, promoted by One97 Communications and its founder Vijay Shekhar Sharma, was working under some restrictions since March 2022.
• In January 2024, RBI had banned taking new deposits, expressing concern about continued compliance with the rules. After which panic increased among the customers and many people started withdrawing their money.
• At the same time, now RBI has canceled the banking license of Paytm Payments Bank.

When will we get customers’ money?

• RBI has clearly said that Paytm Payments Bank has so much money available that if needed, the deposited amount of all the customers can be easily returned.
• At present, both the bank and the regulator are assuring that the customers’ money is completely safe. There will be no loss to the customers. More clear information regarding the refund process and timeline is expected in the coming weeks.

Bank gave assurance to customers

After the cancellation of the license by RBI, Paytm Payments Bank has assured the customers that their money is completely safe. The bank has said that it has sufficient cash. Due to which the deposits of all customers can be easily refunded.

This includes savings accounts, current accounts, wallets, prepaid instruments, FASTag and all other deposits. Giving further information, the bank said that information regarding the further process will be given from time to time.

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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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Paytm shares: Paytm’s parent company One 97 Communications results came on the quarter July 22 July, in which the company recorded a net profit of Rs 123 crore. A year ago, the company was at a loss of Rs 839 crore during the same period. That is, for the first time after the listing, the company has been told about pure profits during a quarter. But today i.e. on July 23, the stock market saw a decline in Paytm shares and a day after the result, its shares fell 3 percent.

Paytm’s increased profit

Paytm Ebitda (Operating Profit) has been Rs 72 crore during the quarter of FY 2025-26. If you compare both the previous quarters, then the company was in the operating profit deficit. With this, revenue has increased to 1917.5 crores i.e. 28 percent. Global brokerage firm on Paytm’s shares has increased the ratings to ‘bye’. Its target price has been increased to Rs 1250. On Monday, PTM’s closed market price was Rs 1051, compared to that it increased by 19 percent.

132% jumped shares in a year

Paytm’s stock has seen a jump of about 132 percent in a year. Global firm Bernstein has also set a target price of Rs 1100, advising Paytm shares. Along with this, its stock has been given a rating of outperform. However, McWery has given the target price of Paytm shares below the current level i.e. Rs 760, giving it the rating of the underpaper.

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