India Banking Regulator Cancels Paytm Payments Bank License

India’s banking regulator has canceled the license of Paytm Payments Bank Ltd, more than two years after restricting its core business activities, citing violations of rules, and effectively rendering it defunct.

Paytm, which was once backed by SoftBank Group Corp., had been in the cross-hairs of the regulator since at least 2022. India’s central bank virtually shut down the billionaire Vijay Shekhar Sharma-owned bank two years ago, denting much of his business. The move forced him to forge partnerships with other lenders for his wider fintech empire that comprises digital payments, merchant loans, and payment machines. The formal cancellation of the small bank license will have little consequence on the operations of parent One 97 Communications Ltd.