RBI’s blow to Paytm, license of payment bank cancelled, huge fall of 8% in shares, panic among investors. – ..

News India Live, Digital Desk: The troubles of fintech giant Paytm are not ending. Taking a major step, the Reserve Bank of India (RBI) has completely canceled the banking license of Paytm Payments Bank Limited (PPBL). After this strict action of RBI, as soon as the market opened on Monday (April 27, 2026), huge selling was seen in the shares of Paytm’s parent company ‘One 97 Communications’ and the shares fell by about 8%.

Why did RBI take such a tough decision? The Reserve Bank has taken this action under Section 22(4) of the Banking Regulation Act, 1949. According to RBI, the functioning of Paytm Payments Bank was found to be against the interests of the depositors and the bank was continuously violating the license conditions. The Central Bank clearly stated that the management of the bank is detrimental to the public interest and there is no longer any justification for running it further. This order has become effective from the close of business on April 24, 2026.

Chaos in the stock market: Investors lost crores of rupees This decision of RBI had a direct impact on the stock market. Paytm shares fell to ₹1,051 on Monday morning from the previous closing level of ₹1,147. However, later the stock saw a slight recovery due to some buying at lower levels, but it still remains in the red. Market experts believe that the cancellation of the license has deeply hurt Paytm’s future business model and investor confidence.

What will be the impact on your wallet and UPI? After the license of Paytm Payments Bank is cancelled, the biggest question in the minds of customers is what will happen to their money?

Paytm App: The company has clarified that the Paytm app will continue to work as before.

Wallet and UPI: If your Paytm UPI or wallet is linked to any other bank (like SBI, HDFC, Axis), then you do not need to worry. You will be able to make payments as usual.

PPBL Account: If your money is directly in the Paytm Payments Bank account, you will be able to withdraw only your existing balance; New money cannot be deposited in this. RBI has assured that the bank has enough liquidity to return full money to the customers.

What next? RBI will go to high court RBI has informed that it will now apply to the High Court and start the process of complete winding-up of the bank. Paytm said in an exchange filing that the decision will not have any major impact on the company’s core business and financial position as it had already separated itself from the banking unit. However, analysts believe that the stock may remain under pressure due to regulatory risks.