RBI Cancels Paytm Payments Bank Licence; Stock Falls 7.5% As Board Approves Closure

The Reserve Bank of India has cancelled the banking licence of Paytm Payments Bank, citing persistent non-compliance with regulatory norms. The bank's board has approved a complete winding up of operations. Paytm's stock declined 7.5% following the announcement, though the company clarified that its payments, wallet, and broking services will continue without disruption. Customers with remaining deposits are required to withdraw their funds before the bank closes. Analysts note the write-off was already accounted for in the books, and advise long-term investors to consider accumulating the stock in a staggered manner.