Paytm clarified that its current business model is independent of the Paytm Payments Bank.
One97 Communications, the parent company of Paytm, on Friday said there will be no impact on its operations, services, or financials following the Reserve Bank of India’s (RBI) decision to cancel the banking licence of Paytm Payments Bank Limited (PPBL), its associate entity.
In a stock exchange filing, One97 Communications clarified that PPBL is a separate entity and that the company has no exposure or business linkage with it. “There is no direct financial impact on the Company,” Paytm said, adding that it had already fully impaired its investment in PPBL as of March 31, 2024.
The company also emphasised that all its key offerings remain fully functional. “Paytm and its services… will continue to operate uninterrupted,” the filing noted. This includes the Paytm app, UPI services, QR payments, Soundbox, card machines, payment gateway, and other merchant solutions.
Paytm further highlighted that its current business model is independent of the payments bank. Following regulatory restrictions imposed in early 2024, the company had already transitioned to a third-party payments framework, moving critical operations such as UPI and merchant settlements to partner banks.
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Under this structure, Paytm operates as a third-party application provider (TPAP), with its UPI services routed through a multi-bank arrangement led by Yes Bank. Over time, it also secured key regulatory approvals, including onboarding new UPI users and obtaining a payment aggregator licence, strengthening its payments ecosystem outside the bank.
The company reiterated that PPBL “operates independently, with no board or management involvement” from One97 Communications, underlining that any regulatory action on the bank does not extend to Paytm’s core business.
The Reserve Bank of India (RBI) on Friday cancelled the banking licence of Paytm Payments Bank Limited, more than two years after imposing curbs over regulatory violations, including deficiencies in customer due diligence.
Paytm Payments Bank, which received its licence in August 2015, was allowed to accept deposits but not lend. The bank had faced increasing regulatory scrutiny over compliance issues related to KYC norms, fund flows, and technology systems.
In January 2024, the RBI directed the bank to halt fresh deposits, effectively shutting down its core operations. By March 2024, the bank was barred from accepting any new funds, including wallet top-ups and credit transactions, placing it in a run-down phase.
The central bank has now said it will approach the High Court to initiate the process of winding up the bank.
Despite the regulatory action, Paytm’s payments ecosystem had already adapted over the past two years, ensuring continuity for users and merchants. The company’s shift away from its banking arm means that day-to-day services such as UPI payments and merchant transactions remain unaffected.
Overall, the licence cancellation formalises the closure of an entity that had already become operationally inactive, with minimal implications for Paytm’s ongoing business.
Published on: Apr 24, 2026 10:05 PM IST
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