Paytm regulatory overhaul in India

In April 2026 the Reserve Bank of India cancelled the licence of Paytm Payments Bank, citing persistent regulatory violations. Following the cancellation, Paytm’s parent company One97 Communications sought to keep its payments ecosystem alive. On 21 July 2026 it applied to the RBI for a Prepaid Payment Instrument (PPI) licence, aiming to relaunch its digital wallet independently of a banking partner.

A week later, on 28 July 2026, the Delhi High Court ordered the official winding‑up of Paytm Payments Bank under the Banking Regulation Act and the Companies Act. The court appointed a liquidator to assume the bank’s board powers, concluding a series of supervisory actions that began in March 2022 when the RBI first barred the bank from onboarding new customers and later imposed limits on deposits, credits and wallet top‑ups.

Together, the two developments show Paytm shifting from attempting to rebuild its wallet service through a PPI licence to the final dissolution of its banking subsidiary, reflecting intensified regulatory enforcement in India’s payments sector.