Paytm users got the biggest shock! RBI canceled banking license, know what will happen to your money now?

Mumbai: The Reserve Bank of India (RBI), taking the toughest action so far against Paytm Payments Bank (PPBL), has completely canceled its banking license. According to the order issued by the central bank, this decision has become effective from the close of business on April 24, 2026. After this step, the banking existence of Paytm Payments Bank is now over.

The strictness was continuing for two and a quarter years

Let us tell you that the tussle between RBI and Paytm Payments Bank is very old. It started on March 11, 2022 when the bank was banned from adding new customers. After this, on 31 January and 16 February 2024, RBI had imposed more restrictions on its functioning. Under this, a ban was imposed on accepting deposits, credits or topups in the accounts of existing customers. For the last two and a quarter years, customers were only able to withdraw their money from this bank, it was not possible to deposit new money.

Why was such a tough decision taken?

RBI clarified that the way Paytm Payments Bank was conducting its operations was detrimental to the future of both the bank and the depositors. According to the central bank, the attitude of the bank’s management was discriminatory and negligent towards the general public and depositors. RBI believes that it was not in the public interest to allow this bank to function further. This is the reason why restrictions were first imposed and now the license itself has been cancelled.

Is your money safe or not?

Amidst the news of license cancellation, RBI has also given relief information to crores of customers. RBI has said that Paytm Payments Bank has enough cash to return the deposits of all its customers. That means customers’ money is completely safe. Now as part of the next process, RBI will apply to the High Court to completely close this bank.

What will be the impact on common people and shopkeepers?

This decision is going to have a direct impact on common customers and traders. People who have accounts in this bank will have to immediately transfer their money to some other bank. Users using Paytm wallet will also have to look for other options. Most affected will be those small shopkeepers and merchants who were dependent on Paytm QR code to take payments. Also, if you have added any auto-pay or subscription service (like Netflix or electricity bill) to Paytm Bank, update it immediately, otherwise your payment may fail.