RBI cancels Paytm Payments Bank licence

When Action Arrived

Published action records across the covered window, split into RegOversight severity bands. Empty intervals remain visible.

RBI action records by publication interval and severity band
Interval	Total	S0–S1 · lifted / low	S2–S3 · moderate / high	S4–S5 · major / severe
29 Jun	10	2	2	6
6 Jul	2	0	0	2
13 Jul	14	1	10	3
20 Jul	12	5	4	3
27 Jul	6	2	2	2
3 Aug	7	1	3	3
10 Aug	9	3	4	2
17 Aug	2	0	2	0
24 Aug	7	2	2	3
31 Aug	2	1	1	0

What Stood Out

Each finding is grounded in precomputed metrics. Open it to inspect the supporting numbers and the limits of the claim.

Co-operative banks account for most of the penalty increase

Disclosed penalties rose from ₹1.62 crore to ₹3.08 crore. Co-operative banks accounted for ₹1.22 crore across 30 actions, compared with ₹40.3 lakh across 14 previously, and 56.0% of the increase.

Severe actions made up a smaller share of the activity

So far, 24 actions are classified as severe, or 33.8%, compared with 25 actions and 46.3% in Q2 2026. There were 4 cancellations, against 7 previously, and no supersessions in either period.

Two bulk cancellation orders declared 251 entities

The 15 July order declared 192 entities and the 11 August order declared 59, for 251 declared entities in the two largest orders. Across 71 action records, 320 entities were declared.

Penalty values were less concentrated in the largest actions

The median stated penalty was ₹2.7 lakh, compared with ₹2.0 lakh previously, while the maximum was ₹63.6 lakh against ₹41.8 lakh. The five largest penalties made up 52.8% of the total, down from 68.0%.

What RBI Did and Where It Landed

Amber bars show the current mix. The fine marker shows the comparable earlier period, so a change is visible rather than merely asserted.

Action mix

Primary recorded action category.

Monetary penalty48 · 67.6%
Previous 28 · 51.9%
Business restriction18 · 25.4%
Previous 18 · 33.3%
Licence cancellation4 · 5.6%
Previous 7 · 13%
Action lifted1 · 1.4%
Previous 1 · 1.9%

Lifecycle

Fresh actions, extensions and withdrawals.

Fresh action56 · 78.9%
Previous 37 · 68.5%
Extension14 · 19.7%
Previous 16 · 29.6%
Lifted / withdrawn1 · 1.4%
Previous 1 · 1.9%

Entity types

Action records by regulated-entity class, not entities affected.

Co-operative bank47 · 66.2%
Previous 36 · 66.7%
NBFC19 · 26.8%
Previous 11 · 20.4%
Bank4 · 5.6%
Previous 4 · 7.4%
Payment entity1 · 1.4%
Previous 3 · 5.6%

Why RBI acted

Overlapping themes; one action may carry several reasons.

Reporting & disclosure34 · 47.9%
Previous 22 · 40.7%
Governance & oversight23 · 32.4%
Previous 15 · 27.8%
KYC / AML20 · 28.2%
Previous 12 · 22.2%
Lending norms15 · 21.1%
Previous 6 · 11.1%
Capital & exposure norms9 · 12.7%
Previous 15 · 27.8%
Customer protection9 · 12.7%
Previous 13 · 24.1%

Defining Actions

Up to four non-duplicative actions selected for monetary impact, breadth, severity or relief. Quiet periods may show fewer.

Reserve Bank of India imposes monetary penalty on Bank of Baroda
Largest disclosed penaltyS4 High
3 Jul 2026₹63.6 lakhmonetary penalty
Bank of Baroda
Bank of Baroda received the largest disclosed penalty in the period. The bank was penalized for non-compliance with RBI directions on Fair Practices Code for Lenders and KYC, including charging interest higher than the contracted rate in certain loan accounts and delays in uploading certain customers’ KYC records to CKYCR.
Read case brief RBI source
RBI cancels Certificate of Registration of 192 NBFCs
Widest orderS5 Severe
15 Jul 2026licence cancellation
Naveen Merico Engineering Co. Private Limited
This was the widest order in the period. RBI cancelled the Certificate of Registration of 192 NBFCs under Section 45-IA(6) of the RBI Act, 1934.
Read case brief RBI source
Winding up of Paytm Payments Bank Limited
Institutional exitS5 Severe
28 Jul 2026licence cancellation
Paytm Payments Bank Limited
This marked an institutional exit for Paytm Payments Bank Limited. RBI cancelled its banking licence under Section 22(4) of the Banking Regulation Act, 1949; the release also notes that the High Court ordered winding up and appointment of a liquidator.
Read case brief RBI source
Cessation of “Coöperatieve Rabobank U.A.” as a banking company within the meaning of sub section (2) of Section 36 (A) of the Banking Regulation Act, 1949
Highest severity, single entityS5 Severe
27 Jul 2026licence cancellation
Coöperatieve Rabobank U.A.
Coöperatieve Rabobank U.A. ceased to be a banking company through an RBI notification published in the Gazette of India. It was a highest-severity single-entity action.
Read case brief RBI source

What It Cost

48 actions had a disclosed amount. Totals and distribution shape are kept separate from action volume.

Median: ₹2.7 L
Largest: ₹63.6 L
Top five: ₹1.63 cr
95th percentile: ₹13.3 L

Change by entity type

Arithmetic attribution of the change in disclosed value. Contributions may exceed 100% or run in the opposite direction.

Entity type	Current	Previous	Contribution
Co-operative bank	₹1.22 cr	₹40.29 L	56%
NBFC	₹63.3 L	₹26.7 L	25.1%
Bank	₹1.23 cr	₹88.7 L	23.4%
Payment entity	₹0	₹6.6 L	-4.5%

Entity Coverage

Declared: 320
Names extracted: 332
Canonical links: 336
First seen: 35

Entity counts are breadth indicators, not action counts. One bulk order can name hundreds of companies.

Orders Still in Force

Orders: 30
Entities: 30
Expiring next: 18
Duplicate entity rows: 0

Next expiry window: 1 Oct 2026–31 Dec 2026.