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Worrying: Customer deposits worth ₹800cr stuck in Paytm Payments Bank
26 Apr 2026

Almost two years after operations were suspended, over ₹800 crore of customer deposits remain stuck in Paytm Payments Bank.

Of the total sum, roughly half is locked in frozen accounts, while ₹400 crore is still unclaimed, as per CNBC-TV18.

The Reserve Bank of India (RBI) had earlier canceled the bank's license, stating its continuation was against public interest and detrimental to depositors.

The bank had more than ₹5,500 crore in deposits before regulatory action began.

Issues with PPB
Regulatory scrutiny

The RBI had raised concerns over the bank's management and compliance with licensing conditions. Despite regulatory nudges to facilitate withdrawals, a large portion of deposits remains stuck. The central bank had allowed extended timelines for customers to move their funds before eventual shutdown of operations.

It started operations in May 2017
Operational background

Paytm Payments Bank started operations in May 2017 as part of a separate category of banks to serve the under-banked and unbanked masses. However, it cannot lend money.

Out of 11 payments bank licenses approved in 2015-2016, about half have surrendered their licenses or shut down operations.

After Paytm Payments Bank's exit, India now has five such banks: Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank, Jio Payments Bank, and NSDL Payments Bank.

Impact on Paytm's stock
Parent company's response

One97 Communications, Paytm's parent company, said it has no exposure to Paytm Payments Bank or material business arrangements with it.

The RBI's directive had a significant impact on One97 Communications's shares, causing a 20% drop the next day.

Senior research analyst Pranav Gundlapalle said, "The payments bank model was, to some extent, an industry and regulatory experiment, so the implications are different," adding that "near-term sentiment could remain negative for the stock."

Strategic positive for Paytm?
Strategic shift

Gundlapalle also noted that exiting the payments bank structure could give Paytm more flexibility to pursue an NBFC license.

Mohit Agarwal from Unaprime Investment Advisors said, "Paytm's core value today lies in payments distribution, merchant acquiring and loan sourcing."

He added that this exit could be strategically positive for Paytm as it focuses on its core businesses.