Paytm’s post-PPBL pivot: How the shift to multi-bank model shielded it from Payments Bank ban fallout

On April 24, the Reserve Bank of India revoked Paytm Payments Bank’s banking license. Following the development, the company One97 Communications share price slipped about 7 percent. However, this development was not a sudden occurrence; it was the culmination of regulatory developments spanning over 4 years.

It started in March 2022, when the central bank prohibited Paytm Payments Bank from onboarding new customers. Later in 2024, the RBI prohibited Paytm Payments Bank from deposits or credit transactions or top-ups in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc.