Paytm to Wind Up Payments Bank After RBI Licence Cancellation, Says Core Business Unaffected

One 97 Communications Ltd. ( (IN:PAYTM) ) has issued an announcement.

One 97 Communications has announced that Paytm Payments Bank Limited, its associate entity, will undergo voluntary winding up following the Reserve Bank of India’s cancellation of the bank’s licence with effect from April 24, 2026. Once the winding-up order becomes effective, Paytm Payments Bank will cease to be an associate company under Indian corporate and securities regulations.

The company emphasized that it has no financial exposure or material business arrangements with Paytm Payments Bank and does not expect any material impact on its business, operations, or financial condition. Core Paytm services, including the main app, UPI, wallet-linked offerings, merchant acquiring products, and platforms run by subsidiaries and other associates, are expected to continue operating without interruption, aiming to reassure shareholders, investors, and customers about operational continuity.

Regulators’ direction in this case underscores the tightening oversight of banking and payments entities in India’s fintech ecosystem. For Paytm, formally separating from the payments bank structure may help ring-fence its listed entity from regulatory actions on the banking side, while also putting greater focus on its non-bank payment, commerce, and financial services businesses.

More about One 97 Communications Ltd.

One 97 Communications Limited, best known for its Paytm brand, operates in India’s digital payments and financial technology sector. The company offers consumer and merchant payment services through the Paytm app, Paytm UPI, and Paytm Payment Gateway, along with products such as Paytm QR, Soundbox, card machines, Paytm Gold, and investment platform Paytm Money.

Average Trading Volume: 161,137

Technical Sentiment Signal: Buy

Current Market Cap: 742.4B INR

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