India’s central bank has cancelled the banking licence of Paytm Payments Bank Limited, barring it from carrying out banking operations with immediate effect, according to an order issued Friday.

The Reserve Bank of India, in a statement said the licence was revoked under Section 22(4) of the Banking Regulation Act, 1949, effective at the close of business on April 24, 2026. The regulator also said it will move to seek the bank’s winding up before the High Court.

The RBI said the bank’s affairs were conducted in a manner “detrimental to the interest of the bank and its depositors” and that its management was not in compliance with statutory requirements. It also cited repeated breaches of licensing conditions and concerns over public and depositor interest.

In its order, the central bank said the institution was no longer meeting conditions under multiple provisions of the Banking Regulation Act, including those relating to governance, depositor protection and licensing compliance.

The RBI said Paytm Payments Bank has sufficient liquidity to repay its deposit liabilities in the event of winding up.

The regulator had previously restricted the bank from onboarding new customers in March 2022, and later imposed additional operational restrictions in 2024, including limits on deposits, credits and wallet top-ups.

Those measures significantly curtailed the bank’s ability to expand its customer base and process new transactions.

The latest decision effectively ends the bank’s ability to operate as a licensed banking institution in India.

No immediate response from the company was included in the order.