Paytm

On April 24, 2025, the Reserve Bank of India revoked Paytm Payments Bank's license, citing affairs conducted 'detrimental to the interest of depositors' and a 'consistent pattern of non-adherence to regulatory norms' despite multiple prior warnings. The action followed earlier restrictions banning new deposits and users. The regulatory action sent shockwaves through India's fintech sector.

Paytm laid off over 3,500 sales employees between December 2023 and March 2024 after RBI restricted its payments bank subsidiary from onboarding new customers. Despite founder Vijay Shekhar Sharma's January 2024 promise of no layoffs, headcount dropped from 40,000+ to 36,500. In 2024, Paytm accounted for 49% of total Indian startup layoffs. Employees alleged HR pushed 'voluntary' resignations to avoid severance.