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RBI Cancels Paytm Payments Bank Licence, Triggers Court-Supervised Wind-Up

Analysts expect little direct hit to Paytm’s core business, with refunds to depositors to be overseen by the High Court.

Overview

  • Paytm Payments Bank, which lost its licence effective Friday, has been barred from all banking activity and the RBI will petition the High Court to wind up the bank.
  • PPBL’s board and shareholders have approved winding-up steps, and both the RBI and Paytm say the bank holds enough liquidity to repay every depositor.
  • Paytm’s shares fell as much as 8% on Monday, wiping about ₹5,900 crore in market value before trimming losses by midday.
  • Paytm says its app, UPI and merchant devices remain live through partner banks, and brokerages including Bernstein, Jefferies and Goldman see limited direct financial impact after earlier ring-fencing and write-offs.
  • Media reports point to roughly ₹800 crore still stuck or unclaimed in PPBL accounts, underscoring refund hurdles at a payments bank, a model that takes small deposits but is not allowed to lend.