The Reserve Bank of India (RBI) has cancelled the license of Paytm Payments Bank, effectively shutting it down as a bank from close of business on April 24, 2026. This means Paytm Payments Bank can no longer accept deposits, issue cards, or function as a bank, and the RBI will seek its winding‑up in the High Court.
Despite the shutdown, your Paytm UPI and most core services will continue to work normally. Paytm has shifted its UPI operations to partner banks such as Yes Bank and now runs on a multi‑bank model approved by the National Payments Corporation of India (NPCI). Popular features like the Paytm app, UPI transfers, QR payments, FASTag, and the Paytm wallet remain operational for both customers and merchants.
Paytm Payments Bank had already been restricted for years: new customers were barred in 2022, fresh deposits stopped in January 2024, and by March 15, 2024 no new money could be added. Existing depositors can withdraw their balances during the winding‑up process, and RBI will oversee repayment of funds. There is no direct financial impact on Paytm’s main business because the company had already written off its investment in the payments bank by March 2024.
FAQs [Frequently Asked Questions]
1. Will my Paytm UPI stop working now?
No. Paytm UPI continues through partner banks like Yes Bank, so your UPI handles, QR payments, and transfers will work as before without any cut‑off.
2. Can I still use my Paytm wallet after the licence cancellation?
Yes. Paytm wallet services are not tied to the payments bank and will keep working for recharges, bill payments, and merchant QR payments.
3. What happens to money kept in Paytm Payments Bank accounts?
Existing deposits will be repaid to customers during the winding‑up process; users can withdraw their balances through prescribed channels once the High Court process starts.