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{{short description|Indian payments bank}}
{{Infobox company
| name = Paytm Payments Bank
| logo = Paytmbank-logo.4ba3db09.svg
| type = [[Private company]]
| traded_as =
| founded = {{Start date and age|28 November 2017|df=yes}}<ref name=businesstoday>{{cite news |title=Arun Jaitley launches Paytm Payments Bank, vouches for digital payments |url=https://www.businesstoday.in/sectors/it/arun-jaitley-digital-payments-govt-initiatives-for-digitalisation-financial-inclusion/story/264944.html |publisher=[[Business Today (India)|Business Today]] |date=November 28, 2017}}</ref>
| founder = [[Vijay Shekhar Sharma]]
| location = [[Noida]], [[Uttar Pradesh]], India
| industry = [[Financial services]], [[Banking]]
| area_served = India
| products = [[Banking]], [[Savings Account]],
[[Retail Banking]], [[Online banking|Online Banking]]
| key_people = Arun Kumar Bansal (CEO)
| num_employees =
| owners = {{ubl|[[Vijay Shekhar Sharma]] (51%)|[[One97 Communications]] (49%)<ref>{{cite news |title=Why RBI lost patience with Paytm Payments Bank: Anti-money laundering lapses, related party transactions |url=https://www.moneycontrol.com/news/business/why-rbi-lost-patience-with-paytm-payments-bank-anti-money-laundering-lapses-related-party-transactions-12179361.html |access-date=2 February 2024 |work=Moneycontrol |date=2 February 2024 |language=en}}</ref>}}
| homepage = {{URL|https://www.paytm.bank.in}}
| footnotes =
}}
'''Paytm Payments Bank''' ('''PPBL''') was an Indian [[payments bank]], founded in 2017 and headquartered in [[Noida]].<ref>{{cite news |title=Paytm Payments Bank Launched: All About India's Mobile-First Bank With Zero Minimum Balance |url=https://www.india.com/business/paytm-payments-bank-launched-all-about-indias-mobile-first-bank-with-zero-minimum-balance-2690461/ |publisher=[[India.com]] |date=November 29, 2017}}</ref> In the same year, it received the license to run a payments bank from the [[Reserve Bank of India]] and was launched in November 2017.<ref>{{cite news|url=https://www.livemint.com/Money/qEiZDfiN8jgOIOkANV2ALO/Paytm-launches-payments-bank-Gives-4-on-deposits.html|title=Paytm Payments Bank launched. Here's how it compares to rivals Airtel, India Post|work=livemint}}</ref><ref>{{cite news |title=Paytm gets a green signal from the RBI to formally launch its 'Payments Bank' |url=https://brandequity.economictimes.indiatimes.com/news/business-of-brands/paytm-gets-a-green-signal-from-the-rbi-to-formally-launch-its-payments-bank/56326150 |publisher=[[The Economic Times]] |date=January 4, 2017}}</ref><ref name=RBI/> In 2021, the bank received a scheduled bank status from the RBI.<ref>{{cite news|url=https://www.business-standard.com/article/finance/paytm-payments-bank-receives-scheduled-bank-status-from-rbi-121120900744_1.html|title=Paytm Payments Bank receives scheduled bank status from RBI|work=Business Standard}}</ref><ref name="TOI">{{cite news |last1=Srivats |first1=KR |date=January 9, 2018 |title=Arun Jaitley launches Paytm Payments Bank |url=https://www.thehindubusinessline.com/companies/arun-jaitley-launches-paytm-payments-bank/article9975256.ece |publisher=[[The Hindu Business Line]]}}</ref>

[[Vijay Shekhar Sharma]] holds 51 percent in the entity with [[One97 Communications]] holding 49 percent. Vijay Shekhar Sharma is the promoter of Paytm Payments Bank, and One97 Communications Limited is not categorized as one of its promoters.<ref>{{cite news |last1=Shetty |first1=Mayur |title=Paytm seeks in-principle nod on small bank licence |url=https://timesofindia.indiatimes.com/business/india-business/paytm-seeks-in-principle-nod-on-small-bank-licence/articleshow/77813377.cms#:~:text=MUMBAI%3A%20Paytm%20Payments%20Bank%20has,enable%20it%20to%20extend%20loans. |work=[[The Times of India]] |date=August 29, 2020}}</ref><ref>{{cite news |title=One 97 Communication |work=BSEIndia |url=https://www.bseindia.com/corporates/download/350845/DRHP%20-%20One%2097%20Communications%20Limited_20210716130427.pdf}}</ref> He resigned as [[part-time job|part-time]] non-executive [[chairman]] and board member of Paytm Payments Bank, citing regulatory challenges with the Reserve Bank of India.<ref>{{cite news |title=Paytm's Vijay Shekhar Sharma steps down from payments bank board |url=https://timesofindia.indiatimes.com/business/india-business/paytms-vijay-shekhar-sharma-steps-down-from-payments-bank-board/articleshow/108018841.cms |work=The Times of India |date=26 February 2024}}</ref><ref>{{cite web |title=Announcement under Regulation 30 (LODR)-Press Release / Media Release |url=https://www.bseindia.com/xml-data/corpfiling/AttachLive/0cf14b0d-2344-4904-91a7-ae05d5dccbce.pdf |website=BSE Limited |access-date=2024-02-26 |archive-date=2024-03-05 |archive-url=https://web.archive.org/web/20240305081819/https://www.bseindia.com/xml-data/corpfiling/AttachLive/0cf14b0d-2344-4904-91a7-ae05d5dccbce.pdf |url-status=dead }}</ref>

On {{Date|Jan 31, 2024}}, Paytm Payments Bank was stopped from onboarding new customers onto their platform, due to persistent non-compliance and continued material supervisory concerns within the bank. It was also told to not accept deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards after 15 March 2025.<ref name=":1">{{Cite web |title=Reserve Bank of India - Press Releases |url=https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57224 |url-status=live |archive-url=https://web.archive.org/web/20240131114729/https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57224 |archive-date=2024-01-31 |access-date=2024-01-31 |website=www.rbi.org.in}}</ref><ref>{{Cite web |last=Livemint |date=2024-01-31 |title=RBI bars Paytm from accepting deposits in any customer account after 29 February |url=https://www.livemint.com/economy/rbi-bars-paytm-payments-bank-from-accepting-deposits-in-any-customer-account-from-next-month-11706700713798.html |url-status=live |archive-url=https://web.archive.org/web/20240131115528/https://www.livemint.com/economy/rbi-bars-paytm-payments-bank-from-accepting-deposits-in-any-customer-account-from-next-month-11706700713798.html |archive-date=2024-01-31 |access-date=2024-01-31 |website=mint |language=en}}</ref> The [[Reserve Bank of India]] took this step under Section 35A of the [[Banking Regulation Act, 1949]]. According to the RBI, this decision aimed to address certain irregularities in Paytm Payments Bank's banking services, ensuring compliance with regulatory norms.<ref>{{Cite web |date=2024-02-01 |title=Paytm Bank Faces Trouble as RBI imposes restrictions |work=The Hindu Voice |url=https://thehinduvoice.com/paytm-bank-faces-trouble-as-rbi-imposes-restrictions/ |archive-url=https://web.archive.org/web/20240201063632/https://thehinduvoice.com/paytm-bank-faces-trouble-as-rbi-imposes-restrictions/ |url-status=usurped |archive-date=February 1, 2024 |access-date=2024-02-01 |language=en-US}}</ref>

On {{Date|Apr 24, 2026}}, the RBI canceled the banking license of PayTM Payments Bank, citing non compliance with several sections of the [[Banking Regulation Act, 1949]], effective from close of business on the same day. <ref>{{cite news|url=https://www.thehindu.com/business/rbi-cancels-banking-licence-of-paytm-payments-bank/article70902129.ece|title=RBI cancels banking licence of Paytm Payments Bank|publisher=[[The Hindu]]}}</ref>

== History ==
In 2015, Paytm Payments Bank Limited received in-principle approval from the [[Reserve Bank of India]] to set up a payments bank and was formally inaugurated on November 28, 2017.<ref name=RBI>{{cite news |title=RBI gives licence for 11 payments banks |url=https://www.thehindubusinessline.com/money-and-banking/rbi-gives-licence-for-11-payments-banks/article7557836.ece |publisher=[[The Hindu Business Line]] |date=January 23, 2018}}</ref><ref>{{cite news |title=Paytm Payments Bank Formally {{sic|nolink=y|reason=error in source|Inaugrated}}, To Invest $500 Mn In KYC |url=https://inc42.com/buzz/paytm-payments-bank-paytm/ |work=inc42}}</ref>

In the financial year 2020, the bank facilitated more than 485 crore transactions worth ₹4.6 lakh crore.<ref>{{cite news|url=https://business.paytm.com/blog/paytm-payments-bank-emerges-as-a-success-story-of-the-banking-model-registers-profit-for-the-2nd-consecutive-year/|title=Paytm Payments Bank emerges as a success story of the banking model, registers profit for the 2nd consecutive year|work=Business Blog}}</ref> It processed over 778 million UPI transactions amounting to ₹89,388 crore in June 2022<ref name="UPI Ecosystem Statistics">{{cite news|url=https://www.npci.org.in/what-we-do/upi/upi-ecosystem-statistics|title=UPI Ecosystem Statistics|work=npci}}</ref> and continues to be India's biggest UPI beneficiary bank,<ref>{{cite news|url=https://economictimes.indiatimes.com/industry/banking/finance/banking/paytm-payments-bank-leads-upi-beneficiary-chart-sbi-biggest-remitter-in-december/articleshow/88881214.cms|title=Paytm Payments Bank leads UPI beneficiary chart; SBI biggest remitter in December|work=Economic Times}}</ref> with over 1,370 million digital transactions in June 2022.<ref name="UPI Ecosystem Statistics"/><ref name="Mint">{{cite news |date=April 13, 2021 |title=Paytm Payments Bank processes 970 million digital transactions in March |url=https://www.livemint.com/companies/news/paytm-payments-bank-processes-970-million-digital-transactions-in-march-11618293150047.html |publisher=[[Livemint]]}}</ref>

In March 2021, the bank received approval from the [[Securities and Exchange Board of India]] for issuing payment mandates for initial public offerings (IPOs) through its "@paytm" [[Unified Payments Interface|UPI]] handle.<ref>{{cite news|url=https://www.paytmbank.com/blog/2021/03/sebi-approves-paytm-upi-handle-we-now-enable-seamless-applications-for-ipo/|title=sebi approves paytm upi handle we now enable seamless applications for ipo|work=paytmbank}}</ref><ref name=SEBI>{{cite news |title=Paytm Payments Bank can now issue payment mandates for IPOs as SEBI approves UPI handle |url=https://www.financialexpress.com/industry/banking-finance/paytm-payments-bank-can-now-issue-payment-mandates-for-ipos-as-sebi-approves-upi-handle/2213082/ |publisher=Financial Express |date=March 15, 2021}}</ref>

After the RBI banned it from accepting deposits from {{Date|2024-03-15|}}, it had to quickly migrate the handle to another company with a valid banking license. The handle was transferred to [[Yes Bank]] one day before the deadline to ensure existing users and merchants did not face any issues with their UPI transactions and AutoPay mandates.<ref>{{Cite web |date=2024-03-14 |title=NPCI grants approval to One97 Communications Limited (OCL) to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model |url=https://www.npci.org.in/PDF/npci/press-releases/2024/NPCI-Press-Release-NPCI-grants-approval-to-One97-Communications-Limited-(OCL)-to-participate-in-UPI-as-a-Third-Party-Application-Provider-(TPAP).pdf |url-status=live |archive-url=https://web.archive.org/web/20240316192100/https://www.npci.org.in/PDF/npci/press-releases/2024/NPCI-Press-Release-NPCI-grants-approval-to-One97-Communications-Limited-%28OCL%29-to-participate-in-UPI-as-a-Third-Party-Application-Provider-%28TPAP%29.pdf |archive-date=2024-03-16 |access-date=2024-03-16 |website=National Payments Corporation of India (NPCI)}}</ref>

== Products and services ==
Paytm Payments Bank offers [[Savings account|savings]] and [[current accounts]] with a [[debit card]], facilitating fast and easy payments.<ref>{{cite news |last1=Motiani |first1=Preeti |title=Payments bank deposit limit hiked to Rs 2 lakh by RBI |url=https://economictimes.indiatimes.com/wealth/save/payments-bank-deposit-limit-hiked-to-rs-2-lakh-by-rbi/articleshow/81945184.cms |publisher=[[The Economic Times]] |date=April 7, 2021}}</ref> Paytm Payments Bank issued seven million Visa debit cards through its platform in FY 2021.<ref>{{cite news |title=Paytm Payments Bank overachieved its target of issuing Visa debit cards at 7 million in FY21 as against goal of 1 million |url=https://www.businessinsider.in/business/corporates/news/paytm-payments-bank-overachieved-its-target-of-issuing-visa-debit-cards-at-7-million-in-fy21-as-against-goal-of-1-million/articleshow/89918699.cms |publisher=Business Insider |date=March 1, 2022 |archive-date=May 7, 2022 |access-date=November 3, 2023 |archive-url=https://web.archive.org/web/20220507224700/https://www.businessinsider.in/business/corporates/news/paytm-payments-bank-overachieved-its-target-of-issuing-visa-debit-cards-at-7-million-in-fy21-as-against-goal-of-1-million/articleshow/89918699.cms |url-status=dead }}</ref>

== Partnership ==
In January 2018, Paytm Payments Bank partnered with [[IndusInd Bank]] to offer fixed deposits.<ref>{{cite news |last1=Anupam |first1=Suprita |title=Paytm Payments Bank Partners With IndusInd Bank To Offer Fixed Deposit |url=https://inc42.com/buzz/paytm-payments-bank-indusind-bank-fixed-deposit/ |publisher=Inc42 |date=January 8, 2018}}</ref> It entered into a partnership with [[MasterCard]] for the issuance of virtual and physical debit cards in April 2020.<ref>{{cite news |title=Paytm Payments Bank partners with Mastercard |url=https://timesofindia.indiatimes.com/gadgets-news/paytm-payments-bank-partners-with-mastercard/articleshow/75198763.cms |work=[[The Times of India]] |date=April 17, 2020}}</ref> In January 2021, it tied up with [[Suryoday Small Finance Bank]] to offer fixed deposit services to its account holders.<ref>{{cite news |title=Paytm Bank account holders can now avail FD services from Suryoday Bank |url=https://www.livemint.com/companies/news/paytm-bank-account-holders-can-now-avail-fd-services-from-suryoday-bank-11611032693989.html |publisher=[[Livemint]] |date=January 19, 2021}}</ref> Since June 2021, it is not providing new fixed deposit creation with Suryodaya Bank.<ref>{{cite tweet|number=1404660090716659719|user=paytmbankcare|title=@KanhapskStonie Hi, We would like to inform you that we are not providing new FD creation with Suryodaya Bank. Rest…|date=15 June 2021}}</ref>

== Financials ==
Paytm Payments Bank reported a ₹19 crore profit for the financial year 2018–2019, making it the first [[payments bank]] in India to become profitable.<ref>{{cite news |last1=Merwin |first1=Radhika |title=Why five out of the 11 payments banks have shut shop |url=https://www.thehindubusinessline.com/money-and-banking/five-out-of-the-11-payments-banks-have-shut-operations-why/article29381134.ece |publisher=[[The Hindu Business Line]] |date=September 10, 2019}}</ref> The company registered a profit of ₹29.8 crore for the financial year 2020.<ref name="FY20">{{cite news |title=Paytm Payments Bank posts net profit of ₹30 crore in FY20 |url=https://www.thehindubusinessline.com/money-and-banking/paytm-payments-bank-posts-net-profit-of-30-crore-in-fy20/article31787063.ece |publisher=[[The Hindu Business Line]] |date=June 9, 2020}}</ref>

== Regulatory issues ==
In June 2018, the [[Reserve Bank of India]] barred Paytm Payment Bank from opening new customer accounts, following an audit by the [[Reserve Bank of India]], which made some observations about the process the company follows in acquiring new customers and its adherence to [[Know your customer|KYC]] norms.<ref>{{cite news |last1=Raj |first1=Amrit |last2=Verma |first2=Shrutika |title=Paytm payments bank stops enrolling new users after RBI concerns |url=https://www.hindustantimes.com/business-news/paytm-stops-enrolling-new-users-as-rbi-raises-concerns/story-ez3Dfrxc9lM3ZuZhthcrnM-amp.html |publisher=[[Hindustan Times]] |date=August 1, 2018}}</ref><ref>{{cite news |title=Paytm Payments Bank is still not allowed to add new customers, says CEO |url=https://www.business-standard.com/article/companies/paytm-payments-bank-is-still-not-allowed-to-add-new-customers-says-ceo-118082500050_1.html |publisher=[[Business Standard]] |date=August 25, 2019}}</ref> However, in January 2019, it received approval from the [[Reserve Bank of India|RBI]] to resume on-boarding new customers.<ref>{{cite news |last1=Bhakta |first1=Pratik |last2=Chanchani |first2=Madhav |title=RBI allows Paytm Bank to restart account opening t |url=https://economictimes.indiatimes.com/industry/banking/finance/banking/rbi-allows-paytm-bank-to-restart-account-opening/articleshow/67329250.cms?from=mdr |publisher=[[The Economic Times]] |date=January 1, 2019}}</ref> In October 2021, RBI imposed a fine of ₹1 crore<ref>{{Cite web |title=Reserve Bank of India - Press Releases |url=https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=52434 |access-date=2022-03-14 |website=www.rbi.org.in}}</ref> on the bank for violating laws pertaining to payments and settlement. On 11 March 2022, RBI prohibited PPBL from onboarding new customers owing to "certain material supervisory concerns observed in the bank".<ref name=":0">{{Cite web |title=RBI directs Paytm Payments Bank to stop onboarding new customers, orders IT audit |url=https://www.moneycontrol.com/news/business/rbi-directs-paytm-payments-bank-to-stop-onboarding-new-customers-orders-it-audit-8222121.html |access-date=2022-03-14 |website=Moneycontrol |date=11 March 2022 |language=en}}</ref><ref>{{Cite web |title=Reserve Bank of India - Press Releases |url=https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53405 |url-status=live |archive-url=https://web.archive.org/web/20230924093722/https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53405 |archive-date=2023-09-24 |access-date=2024-01-31 |website=rbi.org.in}}</ref>

In continuation of these actions, and after the validation report of the external auditors revealed persistent non-compliance and continued material supervisory concerns in the bank, RBI ordered the bank to stop onboarding customers and not to accept deposits engaging in credit transactions, or making top-ups in customers accounts after {{Date|Feb 29, 2024}}.<ref name=":1" /> The prohibition order also includes not accepting additional deposits in prepaid instruments, wallets, [[FASTag]]s, or [[National Common Mobility Card]]s.<ref>{{Cite news |last=Mishra |first=Lalatendu |date=2024-01-31 |title=RBI curbs to render Paytm wallet and FASTag inoperative |url=https://www.thehindu.com/business/Industry/rbi-stops-paytm-payments-bank-from-accepting-deposits-after-feb-29/article67796432.ece |access-date=2024-02-01 |work=The Hindu |language=en-IN |issn=0971-751X}}</ref>

The deadline was extended to 15 March 2024 by a press release a week later.<ref>{{Cite web |date=2024-02-16 |title=Reserve Bank of India - Press Releases |url=https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57345 |url-status=live |archive-url=https://web.archive.org/web/20240216200302/https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57345 |archive-date=2024-02-16 |access-date=2024-02-16 |website=rbi.org.in}}</ref>

On 24 April 2026, the RBI cancelled the banking licence of Paytm Payments Bank under Section 22(4) of the Banking Regulation Act, 1949 to carry on the banking business in the country with effect from close of business.<ref>{{Cite news |last=Mishra |first=Lalatendu |date=2026-04-24 |title=RBI cancels banking licence of Paytm Payments Bank |url=https://www.thehindu.com/business/rbi-cancels-banking-licence-of-paytm-payments-bank/article70902129.ece |access-date=2026-04-25 |work=The Hindu |language=en-IN |issn=0971-751X}}</ref> The regulator cited continued breaches of licensing conditions including activities done in a manner prejudicial to the interests of the bank and its depositors. The RBI said that it would move the High Court for starting the winding-up process of the bank. It confirmed that Paytm Payments Bank has adequate liquidity to pay all depositors in full during the winding up. This is the second time the bank has faced regulatory restrictions for breaches relating to customer due-diligence and KYC in 2022 and January 2024.<ref>{{Cite web |date=2026-04-24 |title=Why RBI cancelled Paytm Payments Bank’s banking licence |url=https://indianexpress.com/article/explained/explained-economics/why-rbi-cancelled-paytm-payments-banks-banking-licence-10654383/ |access-date=2026-04-25 |website=The Indian Express |language=en}}</ref>

== See also ==
{{Portal|Banks}}
* [[Airtel Payments Bank]]
* [[Jio Payments Bank]]
* [[India Post Payments Bank]]
* [[Aditya Birla Payments Bank]]

==References==
{{Reflist}}

== External links ==
* {{URL|https://www.paytm.bank.in/|Official website}}

== Further reading ==

* {{Cite news |last1=Ramanathan |first1=Arundhati |last2=Kumar Gunjan |first2=Rounak |last3=Noronha |first3=Gaurav |date=1 February 2024 |title=Why RBl killed Paytm Payments Bank |url=https://the-ken.com/story/rbi-issues-a-death-sentence-to-paytm-payments-bank/?searchTerm=Bank |url-access=subscription |access-date=21 September 2024 |work=[[The Ken]]}}
{{Banking in India}}

[[Category:Payments banks]]
[[Category:Banks established in 2015]]
[[Category:Online payments]]
[[Category:Indian brands]]
[[Category:Privately held companies of India]]
[[Category:Indian companies established in 2015]]
[[Category:2015 establishments in Uttar Pradesh]]
[[Category:Online financial services companies of India]]

Paytm Payments Bank - Revision history

Debadrito Dutta: New