Daijiworld Media Network - Mumbai

Mumbai, Apr 27: In a major regulatory action, the Reserve Bank of India (RBI) has cancelled the licence of Paytm Payments Bank, triggering significant changes in the operations of Paytm’s widely used wallet service.

The move marks a significant setback for Paytm’s financial ecosystem, as the payments bank played a key role in managing wallet balances, facilitating transactions, and supporting merchant payments.

With the licence cancellation, Paytm will no longer be able to carry out core banking functions through its payments bank, including accepting deposits and offering wallet-linked services in their existing form. This is expected to impact millions of users and merchants who rely on the platform for daily transactions.

The RBI’s action follows regulatory concerns regarding compliance and operational practices at the payments bank, though detailed reasons are yet to be fully outlined in the latest development.

Paytm has indicated that it is working on alternative arrangements with partner banks to ensure continuity of services and minimise disruption to users. Customers are expected to be guided on transitioning their wallet balances and linked services in the coming days.

Industry experts say the development could reshape the digital payments landscape, prompting stricter oversight and compliance requirements for fintech firms operating in India.