Paytm shares: Shares of One 97 Communications Ltd (Paytm) are likely to be in focus on Monday, April 27, after the Reserve Bank of India (RBI) cancelled the banking licence of its associate entity, Paytm Payments Bank Ltd (PPBL) on April 24. 

Simultaneously, Paytm issued a clarification to the stock exchanges,stating that the regulatory action would not disrupt its operations or business.

What Paytm said

According to the regulatory filing submitted to the exchanges late Friday, Paytm said that it "does not have any exposure to PPBL or any material business arrangements with PPBL." 

The company drew a clear line between its core operations and the payments bank, referring to PPBL as a ‘separate entity’ that operates independently with no board or management involvement, it noted

"There is no direct financial impact on the Company since, as previously disclosed, the Company had already impaired its investment in PPBL as of March 31, 2024," the company said.

The company also noted that its offerings, including the Paytm app, Paytm UPI, Paytm QR, Paytm Soundbox, card machines, and Paytm Money, would continue to operate uninterrupted.
 

“We would point out to all stakeholders that this matter is related to PPBL, a separate entity, and any reference to this matter should be made solely in the context of PPBL and not attributed to the company,” the company added.

RBI order on Paytm Payments Bank

The clarification comes on the heels of an order from the Reserve Bank of India dated April 24, 2026. The central bank revoked PPBL's licence under Section 22(4) of the Banking Regulation Act, 1949, effective from the close of business on April 24, 2026.

The RBI said that the "affairs of the bank were conducted in a manner detrimental to the interest of the bank and its depositors." 

The regulator also pointed out that the bank's management character was prejudicial to public interest and that it had failed to comply with stipulated licence conditions. PPBL is now prohibited from conducting any banking business, and the RBI would make an application before the High Court to wind up the bank. 

The RBI had previously barred the bank from onboarding new customers in March 2022, followed by severe business restrictions imposed in January and February 2024 that disallowed further deposits or credit transactions in customer accounts.

Stock performance

Meanwhile, in the last trading session on Friday, Paytm shares declined 1.10% to close at Rs 1147.10 per share, down from their previous close of Rs 1159.85 per share. However, the stock has been on an uptrend over a longer timeframe, gaining over 31% in a one-year period.