New Delhi: As the Reserve Bank of India (RBI) cancelled the licence of Paytm Payments Bank Limited (PPBL) with immediate effect, concerns mounted amongst users over the functioning of Paytm app and other subsidiary services. Here is what the cancellation of licence mean for users of Paytm UPI:

One 97 Communications, the parent company of Paytm, has released a statement distancing itself from its associate entity Paytm Payments Bank Limited.

The matter of licence revocation is related to “a separate entity”, the company stressed, adding, “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.”

One 97 Communications said, “The Company does not have any exposure to PPBL or any material business arrangements with PPBL. No services provided by the Company are in partnership with PPBL.” It further stressed that PPBL operates independently, with no board or management involvement from One 97 Communications.

Paytm services are fully operational, the company stressed, adding, “Paytm and its services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies such as Paytm QR, Paytm Soundbox, Paytm card machines, and Paytm Payment Gateway, Paytm Money among others.”

The Reserve Bank of India (RBI) on Friday cancelled the banking licence of Paytm Payments Bank Limited under Section 22(4) of the Banking Regulation Act, 1949 (‘BR Act’) for failing to comply with the conditions of the licence.

Paytm Payments Bank Limited is now prohibited from conducting the business of ‘banking’. Users can withdraw their existing balances.