On Friday (April 24), Paytm stated that the Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank with effect from the close of business on 24 April 2026, citing regulatory violations and concerns over depositor interest and governance.

The central bank said the payments bank failed to comply with licensing conditions and that its affairs were conducted in a manner detrimental to depositors. It added that allowing the bank to continue would not serve public interest and that it would initiate winding-up proceedings before the High Court.

Following the development, One 97 Communications clarified that there is no financial or business impact on the company. It said it has no exposure to Paytm Payments Bank and no material business arrangements with the entity. The company also noted that its investment in the payments bank had already been fully impaired as of 31 March 2024.

In a regulatory filing made late on Saturday (April 25), One 97 Communications further informed that the board of Paytm Payments Bank has approved the winding-up of PPBL.

Upon the winding-up order becoming effective, PPBL shall cease to be an associate company of One 97 Communications.

Paytm said all its services, including the Paytm app, UPI, payment gateway, QR, Soundbox and Paytm Money, continue to operate without interruption, as they are not dependent on the payments bank.

The company reiterated that Paytm Payments Bank operates as a separate entity, with no board or management overlap with One 97 Communications.

One 97 Communications (Paytm) is India's leading mobile payments and financial services distribution company.

The company had reported consolidated net profit of Rs 225 crore in Q3 FY26 as against net loss of Rs 208 crore in Q3 FY25. Revenue from operations during the period under review increased by 20.02% YoY to Rs 2,194 crore.