Business Desk – Paytm Banking License: Digital payments company Paytm’s parent company One 97 Communications Ltd has suffered a major setback. The Reserve Bank of India (RBI) has canceled the banking license of Paytm Payments Bank (PPBL). In the last trading session, the company’s stock fell more than 1% to close at Rs 1,147.35. The current market capitalization of the company is Rs 73,472 crore. Come, let us know the complete details of this decision of RBI in detail.
RBI issued clear instructions
In an order issued on Friday, April 24, the RBI said that with immediate effect, the bank is no longer allowed to conduct any banking business. This action was taken because Paytm Payments Bank had failed to consistently comply with the terms and conditions of its banking license.
This decision can have a huge impact on Paytm’s business model, because a large part of the company’s work is to payment and banking services. However, RBI also clarified that the bank has sufficient liquidity to fully refund its customers’ deposits, and assured customers that there is no need to panic.
Banking license canceled
In its order, RBI said that the license granted to Paytm Payments Bank under the Banking Regulation Act is cancelled. As a result, the bank has been directed to cease all banking activities with immediate effect. Earlier, on March 11, 2022, RBI had banned Paytm Payments Bank from onboarding new customers.
Company performance in Q3FY26
In the third quarter of FY26 (Q3FY26), the company reported a profit of ₹225 crore—a vast improvement over the loss of ₹208 crore in the same period last year. The company’s revenue grew by 20% year-on-year (YoY) to ₹2,194 crore from ₹1,828 crore last year. Paytm’s income from payment services increased by 21% to Rs 1,284 crore. Meanwhile, net payment revenue increased by 25% to Rs 613 crore.
Performance of Paytm shares
Shares of Paytm’s parent company, One97 Communications, have fallen 1.6% in the last five days. However, this stock has given a return of 14% in the last one month. While it has fallen by about 12% in a six-month period, the stock has gained 31% in the last one year. The market capitalization of the company is ₹73,427 crore.
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