Paytm Shares Crash Over 7% as RBI Cancels Paytm Payments Bank Licence; One 97 Comm Issues Clarification

Shares of One 97 Communications, parents company of Paytm declined sharply by over 7% at the opening on Monday after a regulatory action involving its associate entity, Paytm Payments Bank. The fall in the stock came after the Reserve Bank of India (RBI) cancelled the payments bank's licence, effectively halting its banking operations.

Paytm Share Price Today

Shares of One 97 Communications Ltd (PAYTM) on the NSE were trading at Rs 1,071.10 at 9:23 am on April 27, down 6.65% or Rs 76.25 for the day. The stock opened at Rs 1,084.95, hit a high of Rs 1,097.45, and a low of Rs 1,056.05 in the session so far.

Over the past year, the stock has touched a 52-week high of Rs 1,381.80 and a 52-week low of Rs 808.00.

RBI Cancels Paytm Payments Bank Licence, Flags Serious Governance Concerns

The central bank stated that the cancellation came into effect from April 24, 2026. With this decision, Paytm Payments Bank is no longer allowed to carry out any banking business in India. The RBI also confirmed that it will initiate the process of winding up the bank by approaching the High Court.

In its statement, the regulator highlighted serious concerns regarding the functioning of the bank. It said that the affairs of the institution were being conducted in a manner that was detrimental to the interests of the bank as well as its depositors. The RBI also raised red flags about the conduct and governance of the bank's management, stating that it was not aligned with depositor protection or broader public interest.

The central bank further noted that the bank had failed to comply with provisions under Section 22 (3)(b) of the Banking Regulation Act, which relates to key licensing requirements.

Paytm Distances Itself from PPBL, Says No Direct Exposure to Payments Bank

Following the development, Paytm issued a clarification to address investor concerns. The company stated that it does not have any material business exposure to Paytm Payments Bank and does not offer services in partnership with the entity. It also emphasised that PPBL operates independently, with no overlap in board structure.

Paytm added that it had already fully impaired its Rs 227 crore investment in the payments bank as of the end of the financial year 2023-24. This indicates that the financial impact of the development had already been accounted for in its books.

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